Gold’s Rollercoaster Ride in 2023 Amid Global Conflicts and Banking Strain

The year 2023 proved to be a turbulent journey for gold, showcasing its inherent volatility. The precious metal experienced a dip in Q3, aligning with the rise of the dollar and Treasury yields. However, the narrative took a turn in Q4 as both the greenback and yields plummeted, prompting gold to reverse its course. Notably, gold emerged as a safe-haven asset during the banking upheaval in March and the early stages of the Israel-Hamas conflict, ultimately surpassing its previous all-time high.

As the calendar flips to Q1 2024, expectations loom for a moderation in US growth and further progress in inflation, creating pressure on the Federal Reserve to reduce elevated interest rates. The overall fundamental landscape appears to favor bullish potential for gold or, at the very least, provides a supportive backdrop for precious metals.