Gold Outlook 2023: Where can gold prices reach? Know the condition of the market
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The precious metal has fallen 1.17% since the start of 2023 amid a shaky economic outlook for 2023. In such a situation, it is important for common consumers and investors to know and understand how far gold rates can go in 2023.
The year 2022 remained faded for gold. As a result, the year was disappointing for gold investors as well. The reason for this is the effect of recession in gold rates for the whole year from March 2022. However, in the last few months, its prices have increased and according to experts, the year 2023 is showing a boom in gold prices.
Gold markets are driven by persistently high inflation and the adverse effects of central banks – particularly the US Federal Reserve (Fed). After reaching a peak of $1,959.10 on February 2, gold prices recovered to $1,823.90 by March 8, the highest level since April 2022. The precious metal has fallen 1.17% since the start of 2023 amid a shaky economic outlook for 2023. In such a situation, it is important for common consumers and investors to know and understand how far gold rates can go in 2023.
What is the outlook for the year 2023 for gold and silver?
The year 2022 has definitely seen an improvement in the participation of investors in the market and the same has been seen in the gold and silver market as well. However, concerns about inflation have increased due to the Russia-Ukraine war and fears have also increased due to the resurgence of Covid cases in China. This will affect the market and investors will enter next year with this burden. Apart from this, next year the market participants will focus on the monetary policy outlook of the central banks. Investors will also watch the movements of the dollar index and bond yields. The gold/silver ratio has seen a decline in recent times from 97 to 75, aided by the rise in silver. For silver, it can be said that due to green technology and high industrial demand, silver prices may continue to rise.
How far will you go? gold and silver prices
According to the report of Live Mint, further rise in gold prices can be expected in 2023. Investors can go for buy-on-declines opportunities on price correction and target levels in the range of ₹58,888 to ₹61,111 per 10 grams. And according to Business Today, gold prices may touch its all-time high of Rs 62,000 in 2023. A recent report by ICICI Direct said that gold prices are likely to rise mainly due to weakness in the dollar as the US Fed is likely to put a hold on rate hikes soon. Can also cut rates next year and in the fourth quarter of 2023.
Gold can become a safe haven asset
ICICI Direct report said, “Global commodity markets are likely to see a mixed trend in 2023 on the back of IMF’s revised global GDP forecast, falling inflation, slowing rate hikes, weak dollar and China’s reopening.” Could Also, the global economy is currently facing a slowdown. Due to this, there will be a mixed trend in the commodity market. In such a situation, gold can emerge as a safe haven asset. This will increase the price of gold.
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