After a historically high price in 2020, above 2,000 dollars in the midst of the COVID crisis, gold spent a relatively calm 2021, with prices falling slightly. While 2022 was shaping up to be a similar dynamic, the onset of conflict between Russia and Ukraine has largely disrupted the forecast.

For 2023, against the backdrop of a worrying economic outlook and an energy crisis, all experts agree that the value of gold will increase significantly.

What factors influence the price of gold ?

The price of gold is influenced by several parameters. Recessions, inflation, uncertainty, financial risks and health conditions have all contributed to the popularity of gold. Indeed, global crises tend to support gold prices. Investors often see the precious metal as a safe haven during a geopolitical crisis.

As uncertainty clouds the future, countries consolidate their power and compete on the international stage by increasing their stocks. In this way, they secure their independence while waiting for greater political and financial stability. After the conflict in Ukraine, which has already pushed up the cost of gold in the winter of 2021, the situation in Taiwan with the possible escalation of the conflict between China and the US has short-term effects on the world market.

By attacking purchasing power, inflation also influences the cost of an ounce of gold, causing the price of gold to rise significantly. Although there are no real immediate returns on investment, buying gold is a form of saving that preserves the value of your wealth and capital over the long term. An investment that is often much more efficient than most financial investments. Gold is therefore a safe haven in the long term.

Moreover, the price of gold does not depend on any institution and remains independent of central banks, which have no control over it. As a vehicle of power and influence, gold is a genuine fund-raising instrument recognised by all states. In the event of a complete devaluation of banknotes, the attractiveness of gold for investment purposes, in particular investment gold coins or bullion gold coins, fully meets the requirements of commercial transactions.

Outlook and development of the gold price in 2023

Analysts and experts agree on optimistic prospects and targets for 2023 with an increase in the price of gold per ounce. 

Also, all of these financial market players are basing their expectations on several factors, such as a war economy linked to the instability of the Russo-Ukrainian conflict, which would make gold more attractive than other currencies.

The bullish scenario for the yellow metal is also based on a probable weakening of the dollar after it reaches a record high in 2022. This is especially true if the global economy slows down. The US central bank could then adopt an expansionary monetary policy.

In the event that stagflation deteriorates further, central banks would tighten their policies. This set of events would lead to a situation similar to that of the 1970s when investors shunned bonds, currencies and other financial investments.

Gold in 2023 could therefore reach new all-time highs and confirm its role as a safe haven asset. Buying gold could therefore, more than ever, represent an excellent long-term investment. And there is no doubt that the price of gold over the next few years should see further significant increases.