According to the World Gold Council research c updates, the last years showed the record central bank gold demand. The released data showcases a significant bullish trend. Numerous factors are still supporting the bullish gold market. The trend will continue in 2023 with central banks across the globe remaining the main net buyers, experts say.
The People’s Bank of China is currently one of the biggest gold buyers, as we can see the consistent demand from them. 26 tons of gold valued at $16 billion were sold out from the global market.
According to the official statement, the bank has already purchased 15 tons of yellow metal only in January 2023.
The country keeps buying a huge amount of assets for the third month in a row. The main mission is to increase China’s gold reserves. Some analysts say the trend will continue during the next few months. As we know, it is the main indicator of bullish market conditions that signalizes traders to enter a long position.
The last gold purchasing boost from the Celestial Empire was spotted between 2002 and 2019. The country accumulated around 1,150 tons of yellow metal within the 17-year timeframe.
Despite such a huge demand from central banks, investment demand is still quite low. Most investors roughly remain on the sidelines despite the gold price $300 rally showing one of the yearly best starts throughout the last decade.
The economic uncertainty keeps rising along with traders’ fears. This factor restores interest in gold. This is why most economists say 2023 will show record highs for the asset. Markets are expected to downplay recession, which means greater inflation risks.
What’s more, a few experts believe the FED has something to stop inflation and bring it down to the promised 2%. In simpler words, we might witness global economic chaos rises because of stagnation, inflation, or recession. This fact makes it possible for gold to remain a safe-haven instrument.
May the trading luck be with you!