LABUAN, MALAYSIA / ACCESSWIRE / March 23, 2023 / Golden Brokers identified gold, copper and lithium among the most attractive metal commodities in 2023.
January marked gold a champion of a month for the bullion, as the dwindling US dollar significantly contributed to gold's 6.1% rise in the month.
In March, gold prices have surged after the infamous collapse of startup-lender Silicon Valley Bank (SVB) and Signature bank, which created waves of uncertainty in the banking and finance sectors. Yet, it is not certain whether gold will hold on to its current price-tag as the contrasting effects of high inflation and central bank interest rate hikes continue to cause imbalances between the demand and supply forces for gold.
Gold prices have been quite volatile in 2023, with a current support level marking its ground by $1,809 and a resistance level hovering by the $1,950 mark. According to TradingEconomics, gold prices are expected to trade at $1,832 by the end of the first quarter of 2023, but much will depend on the next moves of central banks, as they may pause their tightening campaigns
Copper is a highly-demanded commodity as it is utilized in many sectors, such as construction, electronics, electric vehicles and renewable energy technologies.
A weaker dollar greenback and expectations that China will lift its restrictions boosted the price of copper in January, but has slashed some of it gains in February after bolstered U.S. economic figures and another Fed rate hike weighed down on copper demand.
The metal remains in shortage, and such supply constrictions are expected to overwhelm international markets in 2023, amid increased demand pressures. However, a short-term economic downturn may reduce global demand for copper.
Lithium is the gold of the modern age. Its most notable utility in being a key competent in the batteries of electric vehicles. Investors can trade lithium-focused stocks and instruments, such as those entrenched within lithium mining and battery production, and this sector has quite the large potential for growth.
8.5 million tons of lithium were found in Iran, which accounts to 10% of the global reserves, and lithium carbonate production in Australia is also expected to significantly rise in 2023. As demand for lithium-intensive products remains on the rise, lithium may remain somewhat stable in 2023.
ARIFF AZRAEI BIN MOHAMMED KAMA
Financial Analyst of Golden Brokers
ZEX PR WIRE
SOURCE: Golden Brokers
View source version on accesswire.com: