Gold boom continues in 2023 nearing fresh record

'My house, my land, my gold,' says market strategist

While market volatility and a weakened U.S. dollar have made Wall Street even riskier this year, the value of gold has risen to near record levels and may keep shining. 

"In 2023, traders want the long-term returns of gold," Joe Cavatoni, a market strategist at the World Gold Council, told FOX Business following last year's boom in oil.

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"Gold moves quickly on catalysts like the regional banking crisis, increased interest rates, geopolitical tensions and the debt ceiling," he added. "Gold is liquid, and these factors will take the precious metal even higher."

The price of gold has gained around 12.4% year-to-date, approaching the record $2,051.50 reached in August 2020. 

SPDR Gold Trust

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The latest data compiled by the World Gold Council showed total demand rose 1% year-over-year to 1,174t in the first quarter of 2023. During the same period, bar and coin demand went up 5% year-over-year to 302t. 

Meanwhile, global jewelry consumption was relatively flat, peaking at 478t.

Gold ring jewelry box

A person holds a gold ring from their jewelry box. (iStock / iStock)

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The council predicts bar and coin demand will continue this year, particularly as U.S., Southeast Asian and Middle Eastern demand outweighs the slowdown in Europe. Gold supply is also predicted to rise from mine production and recycling.

Ticker Security Last Change Change %
GOLD BARRICK GOLD CORP. 16.42 -0.67 -3.92%
NEM NEWMONT CORP. 37.48 -1.55 -3.97%
FNV FRANCO-NEVADA CORP. 118.22 -3.25 -2.68%

Cavatoni said the diversification benefits are one of gold’s greatest assets. 

"It will do exactly what you expect under bad market conditions, and it correlates well in better markets," he continued. "Even gold’s demand from central banks around the world is increasing. It’s a diversification moment, and they are choosing gold."

"It’s simple, gold is a real asset. My house, my land, my gold," Cavatoni finished.   

According to the report, the central banks added 228t to global reserves over the first quarter to post a milestone high for the period.

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A recent Kitco News online survey showed investors could see gold top out at a record $2,100 an ounce in 2023. 

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