Gold price in 2023
This year the attractiveness of gold as an investment instrument will increase, but it will depend on whether interest rates in the United States remain high, since if so, “the attractiveness would not be as great, since there could be other safe haven assets with greater yield than gold,” said Janneth Quiroz, deputy director of economic analysis at Monex,
It will also depend on economic activity, because if it suffers a strong slowdown, there will be greater risk aversion, and “by not knowing how deep and how long it will be, the attractiveness of gold will increase,” added the expert, since this precious metal is considered a safe haven asset.
The World Gold Council points out, in its analysis “Outlook for 2023, a turning point in the global economy”, that any sign of falling yields could encourage greater institutional interest in gold and could see some reversal of the dynamics. 2022, which was high demand for retail investment but weak institutional demand.
The price of copper in 2023
As for copper, there is greater certainty that the price will continue to rise, due to the reopening in China, which is eliminating the zero COVID policy, which implies that economic activity in that country will have greater dynamism. “China is one of the largest importers of this metal, which is closely associated with global economic activity,” Quiroz said.
Although there is an expectation that economic activity will cool down, one of the factors that could be offsetting the global slowdown is the reopening of this Asian country, which since the pandemic broke out in early 2020, has not had a normal operation. The fact that normality returns provides the expectation that the demand for some raw materials, such as copper, will increase.
“China is also implementing an expansive monetary policy, interest rates have not been greatly increased and inflation remains low, so considering that this country is the second most important engine of the world economy, we might think that the The reduction in world demand can be offset if China fully reopens,” added the specialist.
In addition to this, copper will join the energy transition and the super cycle of battery metals, with which the demand for this metal is expected to represent about 18% of total world demand by 2040, compared to 7.5% for 2020, and for its price to rise again above $10,000 per ton, and even higher in the long term, according to a study by Julius Bär.
For Robles, copper will also have an upward trend, given a better expectation of the real estate sector in China, after Evergrande Group, the Chinese real estate giant, promised to pay its liabilities and resume work on construction.