Page 22 - Bullion World Volume 04 Issue 07 July 2023

Bullion World | Volume 3 | Issue 7 | July 2023

Precious Metals Price Outlook

Chair: Mr Nikos Kavalis, MD-Singapore, Metals Focus
Panellists:
Mr Bart Melek, TD Securities
Mr Yuichi (Bruce) Ikemizu, Japan Bullion Market Association
Mr Nicholas Frappell, ABC Refinery.
All three of the panellists gave their forecast for gold prices.

Mr Bart Melek, TD Securities
The outlook from their side was mostly bullish for the long-term future as
one of the key aspects being the fed’s tightening approach towards the
monetary policy. “TD Securities assumes that the fed might pivot and claim
an accommodating stance to the policy rates. The real interest rates on the
short-end of the yield curve will move down as soon as there is a slowdown
in the economy. There is also an expectation of robust physical demand for
gold especially from the official sector in the coming year and TD securities
thinks that 2100$ can be as a target for the end of this year”.

The place of Dollar as a reserve currency would not be affected but there
would be a significant hike in all the prices in order to reduce the spending.
Even though there is no threat in the foreseeable future, it would be advised
to diversify one’s portfolio and not just hold the USD which will have erosion
of some scale. With respect to gold there is no counter-party risk and it is
Mr Bart Melek
an appreciating asset, thus making a very safe investment for the years to
come.

22