Although the bullish super cycle in Commodities has us positive overall, Wells Fargo strategists they are neutral in the precious metals sector, which includes gold.
gold under pressure
“Gold has upsides, but its downsides have been driving prices for some time. The dollar’s rise in 2022 to 20-year highs was the most potent negative for gold, but the flattening and subsequent downward reversal of gold dollar value in 2023 which we expect should alleviate some of the pressure on gold.”
“Other positives that may help in 2023 are a favorable supply-demand balance and oversold price conditions (cheap vs. other commodities and negative investor sentiment).”
“Our 2023 target range of $1,900 to $2,000 reflects inline behavior of commodities plus a bit more, while gold looks oversold. However, we caution investors not to get too aggressive on gold until show a better evolution of prices.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
