Gold experienced a roller coaster in 2022 with several positive and negative factors. In the first months of 2022, an ultra-accommodative monetary policy that resulted in a massive injection of liquidity and low interest rates caused inflation that pushed up metal prices.

Gold is known as an inflation hedge. The United States faced inflation above 8%, a 40-year high, and other countries were not far behind. However, the Russian invasion of Ukraine frightened all commodity markets, propelling gold even higher to cross the psychological threshold of $2,000 per troy ounce in March. Over the following months, gold was unable to maintain its gains and began to slide, reaching a low of $1615 per ounce in September following a strong appreciation of the dollar and rising US bond yields.

In 2023, inflation rates are expected to fall from current highs as a result of monetary tightening. The Fed may be forced to pause rate hikes to counter the imminent risk of a recession perhaps in the second or third quarter.

Silver, on the other hand, should have strong upside potential in the new year, as its industrial demand is expected to increase. Silver has strong upside price potential in 2023, as supply and demand fundamentals are tight.