Will Gold Be a Good Investment in 2023?

Let’s be honest, it has been quite a challenging year for gold.

There were a number of factors influencing the gold price in 2022, including rampant inflation, rising interest rates, and lingering geopolitical tensions.

As we are nearing the end of the year, you may be wondering:

What will happen to gold in 2023?

While there’s no definite answer to this question, we will try to give you an idea of where the price of gold could go next year.

In this SPOTLIGHT, you will learn:

  • What happened to the price of gold in 2022?
  • Why did gold not rally amid soaring inflation?
  • Will the price of gold go up in 2023?

So let’s start.

What happened to the price of gold in 2022?

As with any other asset, it has been a year of ups and downs for gold.

In early March, the price of gold surged above $2,000 to its highest level since 2020, as the war in Ukraine pushed investors to seek protection from rising geopolitical risks and high inflation.

Since then, however, other factors have come into play, making gold lose some of its gains. We call them the Fed effect.

The U.S. central bank has started aggressively hiking interest rates to curb stubbornly high inflation, pushing the U.S. dollar to its highest level in two decades.