The Swiss Bank’s prediction of the increase in the global price of gold until the end of 2023

According to the International Economic Group of Fars News Agency, the Swiss Investment Bank (UBS) predicted on Monday that the demand of the world’s central banks for gold will remain strong even after a year when the record purchase of this precious metal was broken.

In 2022, central banks bought 1,078 tons of gold, the highest level of annual demand for the yellow metal since records began in 1950 and more than double the amount recorded in 2021.

According to the estimates of the Swiss Bank, the purchase of this precious metal by central banks will reach a record of 700 tons this year.

Although this is lower than the amount recorded in 2022, it is still 500 tons higher than the average recorded since 2010.

This bank stated in a note: We believe that the process of buying gold by central banks will continue with the increase of geopolitical risks and high inflation.

The Swiss bank added: Perhaps the decision of the United States to freeze Russia’s foreign reserves following the start of the war between Moscow and Kiev will have a long-term effect on the behavior of central banks.

Data from the World Gold Council shows that the world’s central banks bought 228 tons of gold in the first quarter, the most purchases by central banks in the first quarter of any year since records began in 2000.

UBS also believes that gold prices may rise to $2,100 per ounce by the end of this year and reach $2,200 by March 2024.

The bank attributed these expectations to the weakness of the dollar, which is expected to depreciate further as the Federal Reserve prepares to end the monetary contraction cycle while other central banks around the world continue to raise interest rates.

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