The year 2023 will be a golden year for gold metal, experts say.
According to a recent report by ICICI Direct, gold prices are likely to soar mostly because of the weakness in the dollar. The US Fed is likely to halt rate hikes next year and may even cut rates in Q4 2023. The prediction is that in 2023, gold prices may touch their all-time high mark of Rs 62,000.
The last year saw the global gold prices declining constantly except for the all-time high point of above $2,000 an ounce in March. The decline happened in spite of inflation and geopolitical crisis. US Fed’s aggressive interest rate hikes and China’s limited trade participation have only worsened the scenario. As the Fed revised its benchmark interest rate, central banks around the world tightened their monetary policy. All these have contributed to the fluctuating prices of gold globally.
However, experts believe that the non-yielding asset will have more demand in 2023 as investors will purchase gold as store value due to rising fears of recession.
According to the ICCI Direct report, the central bank will add more gold to its reserves due to the current situation and recession fears because gold is proved to be a top performer during stagflation. Research by World Gold Council vouch for that. The year will also see jewellery demand continue and Chinese economic growth improve. This may be a good omen for gold!
