The gold prices are projected to touch Rs 60,000 per 10 grams level in the Indian market in 2023 as more investors turn towards safe-haven assets.
According to market experts, in the international market, the gold prices oscillated in March from a peak of USD 2,070 per ounce to a low of USD 1,616 per ounce in November and are steadily recovering since then. The yellow metal prices were around USD 1,800 per ounce at the beginning of 2022.
The factirs that are expected to boost gold prices this year include recession concerns, geopolitical situation, inflation trends and low appetite for crypto assets.
“Gold in the international market is expected to trade in a range of USD 1,670-2,000 with a positive bias in 2023. On the MCX gold may trade in a range of Rs 48,500-60,000,” PTI quoted Kodak Securities Vice President and Head Commodity Research Ravindra V Rao as saying.
At least in the first quarter of 2023, US Federal Reserve’s decision to further tighten interest rate could cast a dark shadow on gold prices, Rao said.
“Physical demand for gold bars and coins remains strong, spurred by ongoing inflation concerns and geopolitical and financial market risks. Inflows in gold Exchange Traded Fund (ETF) might start gaining momentum as the Fed is likely approaching the final leg of rate hikes in the current cycle,” he noted.
The gold prices were Rs 47,850 per 10 grams at the Multi Commodity Exchange (MCX) at the start of 2022 and then jumped to a peak of Rs 55,680 per 10 grams in March. The prices hit a low of Rs 48,950 per 10 grams in September.
“We expect prices to test USD 1,885 at least in the international markets and Rs 57,000 per 10 grams in MCX with present factors at hand. Any fresh geopolitical tensions could boost prices further.”
“The technical picture, however, is not that conducive for a retest of highs around USD 2,000 in the international markets while the rupee weakness could push domestic prices above all-time highs of Rs 56,370 per 10 grams,” Commtrendz Risk Management Services CEO Gnanasekar Thiagarajan said.
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