New modelling from the World Gold Council confirms what many experts have been saying throughout 2023– that gold prices will go from strength to strength in the latter stages of this year.
Speaking earlier this week, the World Gold Council’s head of research, Juan Carlos Artiga, said there remains solid support for gold going into the second part of the year. Crucially, he says that holding gold remains a safe portfolio option, with those unexposed to the yellow metal in a much more dangerous position when uncertainty hits. He noted, “[Gold] will capture some of the upside if things go well. But it will also protect you much better if things go bad.
“Based on the price action we have seen in the first half of the year, gold has been quite robust. It’s providing some support, and if there’s a further deterioration in economic conditions, including unknown event risks, then there’s more significant upside for gold.”
The World Gold Council expects that gold performance will remain consistent throughout the rest of the year, following the 5.4% price increase achieved in the first six months of 2023. “Most of the challenges for gold we have seen have been priced. We just don’t see the conditions for a major selloff in gold,” Artiga added.
If you have been holding off buying gold hoping for a severe dip, it’s unlikely that prices will return to 2022 levels. That makes buying the dips at current price levels all the more important.
The World Gold Council advises, “It is worth noting, that given gold’s positive performance in H1, an investor unwind would need to be severe to result in the average 2023 gold price falling below £1,413 ($1,800) its 2022 average. Given the inherent uncertainty in predicting the global macroeconomic outcome, we believe that gold’s positive asymmetrical performance can be a valuable component to investors’ asset allocation toolkit.”
Don’t delay. Buy gold now.
