Central Banks and Gold Buying in 2023
In 2023, central banks around the world continued to stock up on gold, nearly matching the record-breaking purchases made in 2022. China and Poland were among the top buyers, with China adding 225 tonnes and Poland increasing its reserves by 130 tonnes. These moves were part of broader strategies to diversify reserves and enhance financial security amid global uncertainties
Federal Reserve’s Rate Decision
The Federal Reserve decided to keep interest rates unchanged, a move that was initially seen as negative for gold prices. However, the Fed’s stance on not cutting rates soon, aiming for inflation to consistently approach 2%, suggests a cautious approach that could influence gold prices moving forward.
Gold Prices React to Economic Signals
Despite the Fed’s decision, gold prices displayed resilience, suggesting market skepticism toward the Fed’s future actions. However, a strong U.S. dollar, driven by positive payroll data, pressured gold prices before they rebounded to close slightly higher at $2,036 per ounce by the end of the week.