witnessed gold prices A noticeable increase since the beginning of 2023 locally and globally, in light of the current economic and geopolitical conditions, where gold is considered a safe haven for investors and a good hedge tool. The gold market was also affected by issuing a certificate with a return of 25%, and we witnessed the decline in the price of gold from 1820 to 1740 pounds.
And gold Bullion said, that central banks bought gold in record quantities in the third quarter of 2022, and the performance of gold in 2022 came as follows globally, achieving losses estimated at 0.3%, despite the losses, but that gold globally was able in the last three trading months to swallow 5 months of losses. Completely from last year, and locally, it achieved gains estimated at 108% during 2022
Gold Billion indicated that the US Federal Reserve is expected to continue its strict policy by raising interest, which is the only obstacle for gold to achieve gains and benefit from the current conditions, but for how long will it continue to raise interest! And when it will reach the target of inflation, then the performance of gold will be somewhat dependent on the US Federal Reserve’s move in the coming period. We would have witnessed weakness in the performance of gold and we might have found lower prices if there were no geopolitical developments.
On the other hand, locally, after profit-taking, it declined gold prices In the last months of 2022, it reached the level of 1550 pounds, to decline by approximately 300 to 350 from the achieved peak, but soon it rose again near its highest price affected by the price of an ounce globally and the rise in the official exchange rate in banks to approach the exchange rate in the parallel market.
And the Gold Pleot report continued, that offering certificates with a return of 25% may affect gold prices, as many may resort to selling the yellow metal in order to achieve a known return without its risks through certificates, and we always recommend diversification between gold and certificates, explaining that whoever follows daily gold prices is Whoever trades to achieve a price difference, taking advantage of price movements, but he who saves or hedges from the depreciation of the pound, or even hedges from the current conditions in a way that does not have to monitor the daily movements of gold.