The demand for gold in 2023 has reached record levels, surpassing other asset classes including crypto currencies, according to calculations by the London Bullion Market Association (LBMA).
The Association’s CEO, Ruth Cowell said that strong central bank demand has helped push gold to a record year, with a red-hot streak that no other asset can compete with.
The first half of the year was particularly strong, with a 7% year-on-year increase. It’s been a formidable year price wise too, with Cowell noting that average prices remained at very high overall levels during the first three quarters, trading within a range of £1,526 ($1,850) and £1,650 ($2,000) throughout.
“U.S. and global inflation, and the rate hikes applied by the majority of central banks (with the exception of the Chinese and Japanese) to combat it, has proved to be a primary driver of the gold price throughout the year,” she said.
Interestingly, while gold experts forecast a strong year for the yellow metal, even they were caught short footed by just how well the bulls have performed in 2023. “This price growth was predicted, although perhaps understated, via an LBMA survey of professional gold analysts conducted in January, which suggested an average price through the year of £1,534 ($1,859),” Cowell added.
While Q4 has only just gotten underway, all the signs suggest that gold will continue to perform strongly and gain ground through the end of the year. Don’t wait for more price increases to create an even higher base line above £1,650 ($2,000).
