Saida Litosh

Having touched a two-and-a-half-year low in November 2022, gold has recorded solid gains since, with its dollar value appreciating 18% by mid-January. This year, gold will continue to draw support from ongoing inflationary pressures, equity market volatility and mounting fears of economic downturn, particularly in the Western world, while any escalation in the Russia-Ukraine conflict or tensions between the US and China could boost safe-haven demand. The recent rally has been driven by rising expectations that the Fed would start scaling back the pace of its interest rate hikes, further boosted by the latest CPI data showing easing consumer prices. This perceived shift in Fed policy will continue to support the gold price this year. In addition, last year saw an impressive rise in central bank purchases, which we believe will remain solid this year, providing support to gold.