Gold Soars to Record Highs in 2023 Despite Expectations
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Gold prices hit record highs in 2023, closing at $2,078/oz. Central bank buying was a major driver, contributing an estimated 10-15% to gold's annual performance.
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Elevated geopolitical risks added about 5% to gold's returns in 2023 and helped offset drags from falling inflation and interest rates.
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Gold ended 2023 as one of the best performing assets, defying expectations of lackluster performance amid rising rates.
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Price sensitivity among some gold buyers likely reduced volatility compared to other commodities like oil.
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Outlook for 2024 is moderate to start, with potential tug-of-war between positive seasonality factors and pushback from dovish sentiment.