This conjecture comes from Saxo Bank’s 20th annual Outrageous Predictions, an attempt not to be correct but to explore ideas and circumstances that the market may not yet have considered, to provoke insightful discussions.
Gold prices surged to a nearly two-year high of US$2,000 (around $2,700) per ounce in March this year, only to drop to below US$1,8000 because of a firmer dollar, as investors ponder inflationary data and the magnitude of rate hikes to come.
Yet, if central banks fail to keep inflation under control, gold might rocket to US$3,000 in 2023 — as investors finally come to terms with the fact that inflation will remain “ablaze” for the foreseeable future and is not merely “transitory”, says Ole Hansen, Saxo Bank’s head of commodity strategy.
