WGC: Gold Finished as a Top Performer in 2023

SEATTLE (Scrap Monster): Gold finished the year 2023 on a high, emerging as one among the top performers of the year, said the latest report published by the World Gold Council (WGC).

The yellow metal surged higher by 14.6% during the previous year, outpacing other assets including stocks, commodities and bonds, amid a high interest rate environment. The LBMA Gold Price PM touched a historical high on the final afternoon auction of the year, hitting $2,078.40 per Oz.

According to the gold trade body, the positive performance of gold was mainly due to a combination of several factors including robust central bank demand, rising demand in major retail markets and heightened geopolitical risks, especially towards the end of the year. As per rough estimates, geopolitics added around 3-6% to gold’s performance in 2023. Also, excess central bank demand added 10% or even more to its performance.

The gold prices are projected to continue its strong run in 2024 as well. The central bank buying is unlikely to touch the same highs as the previous two years. However, any above-trend buying would provide an extra boost to gold’s performance and prices.

A scenario of positive economic growth would support gold’s consumer demand. Also, gold has performed well during recessionary fears as well.