Gold Prices Likely to Rise towards 62000 per 10 Gram

Mumbai: Demand for gold in 2023 is likely to rise due to geopolitical uncertainty coupled with the looming risk of recession, according to ICICI Direct Research.

Historically, gold as an asset is considered to be safe as it typically manages to retain or appreciate its underlying value in times of turbulence.

“Gold prices are likely to rise mainly on the back of weakness in the dollar as the US Fed is likely to pause on rate hikes early next year and may even cut rates in Q4 2023,” ICICI Direct Research said in its Commodity Outlook 2023 report.

Also, concerns over weaker global economic growth and geopolitical tensions will continue to make gold valuable as a hedge against uncertainties, the report said.

ICICI Direct Research expects gold prices to rise towards ₹62,000 per 10 gm in 2023. Currently, gold is trading around ₹55,000 per 10 gm, India Bullion & Jewellers Association data showed.
Earlier this year, a sharp rise in interest rates by the US Fed and other central banks in order to rein in the high inflation melted international gold prices to a nearly one-year low.

In India too, the prices of the yellow metal in physical markets fell to a multi-month low and fell below the psychologically crucial level of ₹50,000 per 10 gm.