Gold price could drop to $1,200 per ounce by 2023, warns Fitch

International ratings agency Fitch predicts the price of gold will fall to $1,600 per ounce this year and slide further down to $1,400 in 2022 “on increased demand due to investment flows and central bank purchases.”

According to Fitch, prices for many commodities “will benefit in the short term from returning demand while the supply response remains slow and inventories are running low.”

The ratings agency said it expects gold prices to drop to $1,200 per troy ounce by 2023.

The price of the precious metal has been under some significant pressure lately. Gold prices fell below the $1,800 level this week, extending losses due to weak safe-haven demand and rising yields for US bonds, which push gold prices down. Prices slid more than one percent on Friday to $1,734 an ounce.

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