An expert stated that gold may rise above $2000 an ounce in the year 2023 due to rising inflation, which supports the price of the metal, which is seen as a traditional tool against price pressures.
According to Arab Net, the CEO of Australian Evolution Mining Ltd, Jake Klein, added that, given the latest minutes of the Federal Reserve meeting, the increases can be postponed or reduced, and this indicates that the market will have to get used to higher inflation numbers for a longer period, and this is good for gold. , according to what he mentioned to Bloomberg, and reviewed by Al-Arabiya.net.
The minutes of the Federal Reserve's last meeting in July, which were revealed on Wednesday, showed that officials saw the need to eventually restore the pace of interest rate increases. Participants also warned against excessive tightening that could harm the economy, noting the risks of entrenching inflationary pressures.
Gold fell only 4% in 2022 even as central banks, including the Federal Reserve, tighten monetary policy aggressively, and higher interest rates reduce the attractiveness of the non-interest bearing metal.
Prices are expected to rebound when the Fed turns easing about a year later, according to Troy Jaysky, chief market analyst at FS Investments.
Spot bullion was trading at around $1,765 an ounce on Thursday. Prices reached a record high of $2,075.47 in August 2020, and approached that level earlier this year before declining in the second quarter.
Klein spoke after Evolution reported a 6% drop in net income for the full year to A$323.3 million ($224 million) earlier Thursday. The company plans to increase production by 12.5% to about 720,000 ounces in fiscal year 2023, and another 11% in the following year, according to a statement.
