The backdrop for cyclical commodities is likely to stay challenging and volatile. Nonetheless, strategists at Credit Suisse believe that Gold could enjoy gains later in 2023.

Gold upside optionality could be considered

“As we enter 2023, the backdrop might still be unfavorable for cyclical markets. However, central bank tightening efforts are likely to be advanced and peak hawkishness may be near, which would provide an improving backdrop for precious metals, especially Gold.” 

“As central banks risk causing a deep growth slump, we see some upside risks to Gold as we progress in time. It may be premature to build outright exposure, but we see merit in looking for medium-term upside optionality.”