15 February 2023

Gold Price Prediction for March (2023)


The price of gold has been on a roller coaster ride in recent years, hitting record highs and plunging to new lows. But what can we expect from the price of gold in 2023? 

To make an accurate prediction, we’ll need to look at the factors that influence Gold prices and how they are expected to behave. 

Major Factors that influence the price of Gold → 

     1. Supply And Demand

Gold prices are reflective of the power of supply and demand. When overall demand for gold spikes, prices soar. But if the supply outweighs the demand, the price tumbles. 

This delicate balance between the forces of supply and demand sets the stage for the market price of gold.

Think of it like a high-stakes game of tug-of-war, with supply and demand vying for control. The point where they meet is the equilibrium, where the market price is determined. 

It’s no secret that gold is one of the most valuable commodities in the world, and understanding the dynamics between supply and demand is key to predicting its ever-changing price. 

According to a report, Chinese economic growth is expected to improve in 2023 which will drive consumer gold demand higher. 

     2. Inflation

The steady rise in prices is a widespread phenomenon known as inflation which causes the value of fiat money to deteriorate. 

But fear not! 

A little inflation is actually a sign of a thriving economy. But when the economy starts to experience an inflation cycle, smart investors and later on, ordinary people start to seek refuge in safe assets like gold because its value remains steady. 

That’s why during inflationary times, the demand for this precious metal spikes, driving its price higher and higher. 

Currently, inflation is high but is expected to start coming down in 2023 according to Art Hogan, managing director and chief market strategist at B. Riley Financial. 

If inflation does fall, then it could decrease the price of Gold by mid-year. However, for March, prices are expected to hold. 

     3. Uncertainty

Investors have a love-hate relationship with uncertainty. While they appreciate stability, they understand that sometimes risks are necessary to secure their financial future. 

However, in uncertain economic times, it’s not uncommon for investors to flock to safer options like gold.

Gold has been a trusted refuge for centuries, even in the face of turmoil and political instability. Its value remains intact, making it a dependable safeguard against inflation. 

The uncertainty of market fluctuations can be unsettling, but it’s important to remember that in a recession, demand for gold often increases as other assets such as stocks, bonds, and real estate tend to decline.

So, next time the winds of uncertainty start to blow, consider the timeless appeal of gold as a hedge against economic turbulence. Whether it’s war, political instability, or any other disruptive force, gold has a proven track record of weathering the storm.

If Turkey and Syria go to war or an uptick in terrorist incidents is seen, we can expect gold prices to rise in 2023. 

We believe for March though, gold prices should hold. 

     4. Currency Movements

The value of gold and the US dollar have an inverse relationship. When the value of the US dollar increases in relation to other currencies, the general price of gold in US dollars tends to fall. 

This is because gold becomes more expensive in other currencies and a higher price can lead to a reduction in demand. Similarly, the value of gold is commonly expressed as US dollars per ounce, making it susceptible to fluctuations in the value of the dollar. 

A rising dollar will lead to a fall in the dollar price of gold and vice versa. However, the dollar is expected to weaken in 2023 and the trend could start as early as March. This would directly result in the price of gold increasing. 

     5. Investment Demand

Remember that gold investing comes in many forms. One of the most common gold investment vehicles is exchange-traded funds (ETFs) that function just like trusts. 

ETFs are traded on an exchange, just like you would trade stocks. However, ETFs aren’t only represented by private entities, but mining companies can also own and trade ETFs. It should be noted that demand for ETFs fluctuates as well. 

ETFs have a lot of gold reserves too and the demand for gold from these investment vehicles can cause significant price movements. ETFs are relatively common, especially in America and the market is believed to be still growing.

According to Nasdaq’s report, gold ETFs can stage a comeback in 2023 which will increase the overall demand for gold thus potentially increasing Gold’s price. We may start to see its impact as early as March. 

     6. Global Jewelry And Industrial Demand

Glimmering with possibility, gold remains one of the most sought-after commodities in the world, and its price is heavily influenced by the demand for jewelry and its industrial applications. 

Giant nations such as the US, India, and China lead the charge in gold purchases, driving up the cost with their insatiable appetite for the precious metal. 

The demand for gold in the jewelry industry, coupled with its use in electronics and other high-tech gadgets, creates a dual demand that keeps prices constantly fluctuating.

According to ICRA, the global jewelry and industrial demand is expected to have registered a healthy growth of 60% in Q2 FY2023 compared to pre-Covid levels (Q2 FY2020)

March Price Prediction

In conclusion, the gold market is always unpredictable and subject to a multitude of factors such as global events, economic conditions, currency fluctuations, demand and supply, and so on. 

However, the signs are pointing to a small increase in gold prices for the month of March. 

Therefore, investing now could be an ideal time for you to add gold in your portfolio and hedge against potential market volatility. 

It’s also important to note that no prediction is ever foolproof which is why it’s essential to stay informed and track the latest developments in the market yourself. 

Keeping informed enables you to make timely decisions that support your investment goals. 

Ultimately, whether you’re a seasoned investor or just starting out, gold has and will remain a valuable and timeless asset that can play a crucial role in your investment strategy just like it does for these six famous billionaires. Cheers!

Keep reading: The All-weather Portfolio strategy and how you can learn from it!

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