The gold market is seeing some downward pressure but remains well supported above $1,800 an ounce following stronger-than-expected economic growth in the U.S. in Q3 translating into higher inflationary expectations. February gold futures last traded at $1,822.50 an ounce, down 0.16% on the day.

According to the managing director and chief investment officer of Swiss Asia Capital, gold prices could surge to $4,000 per ounce in 2023 as interest rate hikes and recession fears keep markets volatile.

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

Many world economies could face slowdowns in the first quarter 2023, which would push many central banks to slow their pace of interest rate hikes and, coupled with still-high inflation, make gold instantly more attractive.

As we once outlined in one of our previous reports, according to the World Gold Council, central banks bought 400 tons of gold in Q3, almost doubling the previous record of 241 tons during the same period in 2018.

A long-term chart suggests the real driver for gold is not inflation, not the dollar, not geopolitics, not Chinese economic patterns, and not correlation with oil, but rather faith in central banks. Gold also reacts to credit stress. It soared following the Nixon shock, in the housing bubble, and with QE.