Gold demand at its highest since 2011
The precious metal has its ‘groove back’ as Fed nears end of rate hikes: Oanda
The demand for gold skyrocketed, rising to its highest point in over a decade last year. And that demand may continue, helped by substantial central bank buying and strong retail investment.
The yellow metal jumped 18% year-over-year in 2022, reaching 4,741t last year as inflationary pressures persisted and traders sought material wealth in the face of a shrinking U.S. dollar.
Gold is up about 6% this year and is predicted to reach $2,000 per ounce in 2023.
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Data compiled by the World Gold Council showed annual central bank demand more than doubled to 1,136t in 2022, up from 450t the year before and to a new 55-year record high.
|GLD||SPDR GOLD SHARES TRUST - EUR ACC||182.06||+1.14||+0.63%|
|WPM||WHEATON PRECIOUS METALS CORP.||44.13||-0.52||-1.16%|
Meanwhile, fourth-quarter purchases peaked at 417t, bringing the total for the second half of 2022 to more than 800t.
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"Gold appears to have gotten its groove back," Edward Moya, a senior market analyst at Oanda in New York, told FOX Business.
"The precious metal is seeing massive inflows as global bond yields decline and central banks near the end of their respective rate hiking cycles."
The Federal Reserve on Wednesday raised interest rates by 25 basis points, reducing the size of prior hikes but signaling inflation remains too high.
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Ken Martin at FOX Business contributed to this report.