Gold hit a record high of US$2,152.30 near the end of 2023, but saw fluctuations throughout the year. Find out what factors have impacted the metal over the past 12 months. Clothed in geopolitical uncertainty, 2023 has been a bumpy ride for investors.
Central banks began raising interest rates early in 2022 to help get high inflation under control, and these increases continued in 2023 as inflation remained sticky. Coupled with Russia’s prolonged invasion of Ukraine and fresh conflict sparking in the Middle East, market participants have faced a great deal of uncertainty this past year.
This tumult was felt strongly in the gold market, which ebbed and flowed as attention shifted from interest-bearing assets to a desire for safety and back again. However, even with some seesawing, gold enjoyed a more consistent year than it did in 2022, when it tested resistance at US$2,000 per ounce, but also dropped toward the US$1,600 mark.