The CEO of Lombard Odier Bank Middle East, Radwan Al-Maghrawi, expected, in an interview with Al-Arabiya, that the price of gold would rise to $2,100 an ounce by the end of 2023.
Al-Maghrawi said that there is an increase in demand for gold by central banks, as the Chinese central purchases amounted to about 58 tons of gold since the beginning of this year, while the Turkish central bank bought about 45 tons of gold during the same period, and the related investment funds increased their portfolios by about 32. tons since the beginning of 2023.
He added that fears of a global economic recession, the recent banking crisis, and geopolitical tensions in some regions, with expectations of the US Federal Reserve abandoning strict monetary policy and the weakness of the dollar, are among the most important factors that will support gold prices.
He pointed out that expectations indicate that the dollar will decline by about 2-3% against the euro, while it will decrease by about 10-11% against the Japanese yen, supported by the return of activity to many economies and the opening of China after Covid, and the start of abandoning the dollar as a major currency, especially with expectations of a Federal Reserve cut. interest rates in 2024.
And Al-Maghrawi indicated that the preferred investment is in bonds, supported by expectations that central banks will abandon strict monetary policy.
Gold prices rose today, Thursday, with the weakness of the dollar, while investors prepared for a group of US economic data, to be issued before the monetary policy meeting of the Federal Reserve (the central bank) next week.
The dollar index fell 0.1% on the day, making the yellow metal less expensive for holders of other currencies, according to Reuters.