Gold at $4,000? Analysts share their 2023 outlook as inflation, recession fears linger

12.23.22 - Gold at $4,000?

Gold last traded at $1,795 an ounce. Silver at $23.68 an ounce.

-CNBC--Gold prices could surge to $4,000 per ounce in 2023 as interest rate hikes and recession fears keep markets volatile, said Juerg Kiener, managing director and chief investment officer of Swiss Asia Capital.

The price of the precious metal could reach between $2,500 and $4,000 sometime next year, Kiener told CNBC's "Street Signs Asia" on Wednesday.

There is a good chance the gold market sees a major move, he said, adding "it's not going to be just 10% or 20%," but a move that will "really make new highs."

Kiener explained that many economies could face "a little bit of a recession" in the first quarter, which would lead to many central banks slowing their pace of interest rate hikes and make gold instantly more attractive. He said gold is also the only asset which every central bank owns.

According to the World Gold Council, central banks bought 400 tonnes of gold in the third quarter, almost doubling the previous record of 241 tonnes during the same period in 2018.

"Since [the] 2000s, the average return [on] gold in any currency is somewhere between 8% and 10% a year. You haven't achieved that in the bond market. You have not achieved that in the equity market."

Kiener also said investors would look to gold with inflation remaining high in many parts of the world. "Gold is a very good inflation hedge, a great catch during stagflation and a great add onto a portfolio."