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Gold Market Commentary: Gold hit new highs in 2023
Gold prices rose 15% in 2023 to reach US$2,078/oz, the highest annual close on record1. The closing price was also a daily record and was mirrored in all but one currency (Table 1). Gold also ended the year as one of the best performing assets. According to (GRAM), the influential drivers of gold’s return in 2023 were central banks, geopolitics, interest rates and gold’s previous (lagged) monthly return (Chart 1). We estimate that central banks contributed between 10 and 15%. As not all central bank buying is observable at a contemporaneous monthly frequency, we rely on two factors within our model to infer ... (full story)