RIU Told Gold Could Reach US$2,470 an Ounce

THE CONFERENCE CALLER: ABC Refinery global head institutional markets Nicholas Frappell held delegates’ attention at the 2023 RIU Explorers Conference as he provided a positive but tempered gold outlook. By Ngaire McDiarmid

“Predicting market direction is always a chance to get things wildly wrong,” he cautioned.

“Russia’s invasion of Ukraine will continue to reverberate through 2023 and large offensives are likely…with consequences that will reshape the kaleidoscope frequently, so obviously bear that in mind in terms of the macro outlook that I make.”

Referring to the Ichimoku Cloud, a data-fuelled technical analysis that charts support and resistance levels and trends, Frappell said it indicated a return to the positive in the medium and long-term.

“Gold price projections going forward, very simplistically, over a monthly chart…[given] the huge double top that we’re aware of at $2,075, suggests a follow up to $2,470,” he said.

In terms of the long-term chart for silver, Frappell said the next upside projection was $28/oz.

The precious metals are currently worth about $1,855/oz and $22/oz respectively on the spot market.

“In summary, now that the US dollar uptrend seems to have reversed, gold appears to have every chance to extend its rally,” Frappell said.

“Beware over-optimistic beliefs around monetary easing – there is scope for more tightness to come and since this presentation was prepared, there’s more evidence to support that.

“The Bank of Japan ending the yield curve control is perhaps the most significant monetary event of the year, I suggest you try and keep wise to that.

“It’s probably more important than changes in the federal reserve expectations.
“Market volatility – not going away anytime soon.

“Gold price targets are remaining ambitious on the upside, and plausible above the 2022 lows of $1,620.”