Gold price to hit US$3,000 in 2023?
In my last article on gold on 4 December 2021, I made the argument that gold price was set for a big fall in 2022 due to the possibility of US interest rate hike. I also highlighted that a drop in gold price would represent good buying opportunities for bullion investors. Indeed, gold price had a major decline in 2022, falling from US$2,040 per troy ounce on 8 March 2022 to a low of US$1,628 per troy ounce on 3 November 2022.
Admittedly, I had not practised what I had preached as I had not bought bullion when gold price collapsed in 2022 (my funds were tied up in the purchase of a new home). Nonetheless, I was shocked that Monetary Authority of Singapore (MAS) had done so in late 2022.
According to the MAS website on International Reserves and Foreign Currency Liquidity, the volume of gold held in our national reserves in December 2022 was 4.94 million troy ounces. As at January 2023, the volume of gold held surged to 6.38 million troy ounces. Thus, the increase in gold held in Singapore reserves represented about 30%. This means that within the span of just a month, MAS had increased gold bullion by a significant quantum.Read more