Gold and Silver in 2023, Central Bank Reality Check

The gold price faced headwinds in February, and after a brief jump to start March is now around US$1,812 per ounce.Speaking to the Investing News Network at this year’s Prospectors & Developers Association of Canada (PDAC) convention, Jeffrey Christian, managing partner at CPM Group, said the decline was to be expected after the metal’s run. “The increase reflected investors’ concerns about the economy, and then the pullback reflected profit taking after three strong months and also a realization that the global economy and the US economy probably were not in as dire straits as some people thought,” he said at the event, which runs from March 5 to 8 in Toronto. He reminded investors to take a long-term view of the market, saying that the yellow metal reached a record average price in 2022. This year, CPM Group sees a range of US$1,740 to US$1,750 on the downside and US$1,980 on the high side. When it comes to silver, Christian said it could fall as low as US$18 per ounce in Q2 or Q3, but he wouldn’t be surprised to see US$28 toward the end of the year. “Let’s say a US$20 to US$28 range is probably a good range for 2023,” he said.Christian also spoke about central bank gold buying, saying that the excitement about recent demand figures is misguided.”The vast majority of central banks are not rushing into gold. Twenty-one central banks bought gold (in 2022); eight of them bought significant amounts,” he said, adding that central banks also aren’t rushing to de-dollarize. China and India are two of the eight large buyers, and the other six are Islamic countries. “Probably it reflects their view about the political and economic and social stability of Islamic governments,” he said. Watch the interview above for more from Christian on the gold market, including recent M&A activity. You can also click here for the Investing News Network’s full PDAC playlist on YouTube.Don’t forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.From Your Site ArticlesRelated Articles Around the Web



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