Saxo Bank is back with its annual Outrages Predictions and it looks like 2023 could be an interesting year for gold prices.
According to the investment bank’s latest price prediction, the value of gold could soar to $2,075 as inflation continues to increase its price. However, it wouldn’t stop there, with the firm believing it would eventually reach $3,000 sometime in 2023.
One factor that could affect this price increase for gold is China. The end of the country’s Zero Covid policy could result in an increase in demand for gold, as well as rising commodity prices as the economy continues to fight inflation.
Saxo Bank said the following about its gold price prediction in a statement obtained by MarketWatch:
“Fed policy tightening and quantitative tightening drives a new snag in U.S. treasury markets that forces new sneaky ‘measures’ to contain Treasury market volatility that really amounts to new de facto quantitative easing.”
How Outrageous Is This Price Prediction?
That depends on who you ask. While inflation, China, and other factors could cause the price of gold to soar, there’s no guarantee this will hold true. On the flip side of that, Saxo Bank has made some crazy predictions in the past that have actually come true.
Basically, investors will want to keep an eye on this gold price prediction without putting too much stock in it.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.