Will Gold Prices Go Up Next Year? Main Drivers Explained
While nobody can accurately predict what the exact price of gold will be next year, several factors might help investors estimate the trajectory of the asset going forward. Whether you’re looking to invest in gold for retirement or simply interested in understanding how markets work, learn about the top reasons why gold prices might go up next year.
Geopolitical Volatility is on the Rise
All the signs are pointing toward geopolitical volatility rising in 2023. Russia’s invasion of Ukraine isn’t coming to an end anytime soon, with the country mobilizing civilians to join the new groups of soldiers to be deployed. The invasion led to the rapid rise in gas prices which pushed up the costs of all products and made inflation the main concern for governments across the world.
Other flashpoints include continuous rifts between Armenia and Azerbaijan as well as China and Taiwan. This tense environment can effect key supply chain routes and push the price of energy commodities further. To stay on the safe side, smart investors are making the switch to precious metals such as gold.
Oil Price Supply Cuts
As fears of a recession are growing, OPEC, which is worried about oil prices decreasing, is planning to cut the oil supply. According to reports, more than 2 million fewer barrels will be supplied from November of this year.
This is bad news for countries that are on the edge of bankruptcy. In 2022, Sri Lanka declared bankruptcy, leading to mass protests in the country. Investors in these countries are looking to convert their assets into gold to safeguard their wealth.
Demand for Jewelry is Stable
The demand for jewelry is expected to continue to rise as there is robust demand from countries such as China and India. In the Hindu festival of Akshaya Tritiya, people buy gold excessively as they believe it to bring success in the future.
Similarly, the demand for jewelry in mainland China is rising too. According to the China Gold Association, jewelry sales rose to 112.09 tons in 2021, an impressive gain of 36.5% year on year.
Select a Reliable Precious Metal Exchange
Want to secure your retirement with gold and silver? Orion Metal Exchange can help make the switch to precious metals seamless. Our team goes the extra mile to help new clients understand the process of how to invest in gold safely. We have helped investors across America get their hands on top-notch precious metals, including silver, gold, platinum, palladium bullions, and coins.
Furthermore, we help clients with precious metal storage who want to store the asset at their home. We also have an in-house IRA department team that takes care of all the paperwork and makes opening a precious metals IRA easy.
Get in touch with us now to learn about our processes and services today.