Precious metals recovery and expectations for upcoming winter

The fourth quarter is traditionally growing for the precious metals markets, the current price dynamics are no exception. After a significant decline in prices in the third quarter to $1625 per ounce of gold and $17.67 per ounce of silver, prices began to recover.

Markets are supported by a slowdown in the hawkish monetary policy of world central banks, which leads to a revival of traders’ interest in buying futures financial instruments, as well as a reduction in aggressive sales of precious metals.

Metals prices in November show clear signs of a reversal to growth, with the reverse taking place not only in the prices of gold and silver, but also in copper and nickel, and other industrial metals, mainly due to the easing of anti-COVID restrictions in China, which is one of the largest consumers of metals in the world.

Metals, including precious ones, have been heavily oversold in recent months but have risen substantially over the past two weeks as the risk of further aggressive Fed policy and a possible easing of pandemic restrictions in China eased.

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What will happen to metal prices in early 2023?

Gold and silver prices until the end of the year and early 2023 will show growth. According to expectations, prices will tend to the levels of 1820-1890 dollars per ounce of gold and 21.5-22 dollars per ounce of silver. However, closer to the second quarter of 2023, the price increase may be replaced by a decrease, as the consumption of metals in a physical form traditionally decreases during this period.

Gold may well return to the range of 1800-1900 dollars per ounce, and copper can test the level of 9000 dollars per ton. If we are talking about 2023, then we can expect some stabilization in metal prices before the Chinese New Year.

Starting from the second half of February, the traditional replenishment of metal reserves and the active phase of the allocation of credit resources in China may begin, which may lead to further positive dynamics in metal prices. In the future, metals can test the maximum price levels of 2022.