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Gold prices may rise to record amid world’s economic risks

January 2023
Gold may rise to its highest-ever price this year, boosted by factors such as the risk for slower economic growth around the world.

Buying gold is seen by many as a safe investment. That makes the metal extra attractive when countries face risks of economic troubles such as higher unemployment and too much debt.

Experts expect gold prices to rise to record highs above $2,000 an ounce this year, Reuters reported on Jan 16.

The US dollar, which gained strength against other currencies last year, will probably weaken in 2023 as the US Federal Reserve is expected to stop raising interest rates at some point this year.

That’s also a factor that could make gold more attractive as a safe investment in comparison with other assets.

In addition, demand for gold may rise as central banks around the world buy more of the metal to add to their gold reserves.

Central banks globally bought almost 400 tons of gold in the third quarter of 2022, the most ever in a single three-month period, according to the World Gold Council.

Reference shelf:
Gold prices seen rising towards record highs as rate rises near end (Reuters)

China Extends Gold Buying With Fresh Flows to Central Bank (Bloomberg)

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