(Kitco News) – Global economic uncertainty and heightened geopolitical tensions will create a “worldwide war economy” that prioritizes domestic supplies and price caps, ensuring that inflation will remain persistently high through 2023.
Taken to its extreme, this scenario will be very good for gold, with Saxo Bank offering an “outrageous” forecast of $3,000 an ounce. “2023 is the year that the market finally discovers that inflation is set to remain ablaze for the foreseeable future,” Ole Hansen, head of commodity strategy at the Danish bank, said in the report.
In an interview with Kitco News, Hansen added that his price target is not an official forecast, but more of a thought experiment on what happens if extreme scenarios in the global economy unfold.
“It’s not so much about being right but starting a discussion on the challenges the global economy faces and how that will impact gold,” he said.
For the rest of this article: https://www.kitco.com/news/2022-12-06/Outrageous-This-is-what-gets-gold-to-3-000-in-2023-says-Saxo-Bank.html