- Date : 16/01/2023
- Read: 3 mins
A look at how gold and silver are expected to fare in 2023
If you invest in precious metals, you must have noticed the roller coaster ride of gold and silver prices throughout 2022. Among other things, precious metal prices are sensitive to seasonal trends and global happenings. There is an element of unpredictability, but experts can nevertheless estimate the gold and silver outlook for the days ahead. As the New Year begins, do you know what experts think of gold and silver prices during 2023?
Gold has been on a steady rise ever since it touched the Rs 50,000 mark in mid-September 2022. Silver demand has followed a similar trajectory. The price movement in gold in 2022 has been filled with ups and downs. Interestingly, you can plot a near-straight line from the gold price at the beginning of the year and the price towards the end of the year. Silver’s January 2022 and year-end price shows a marginal increase. 2022 has been somewhat indifferent to both gold and silver. However, experts predict better days in their silver and gold price forecast.
A few of the influential factors in gold and silver prices in 2023 could be,
- Dollar value – With strong fears of a recession in the US, the dominance of the dollar is expected to wane in 2023. Consequently, the US dollar may concede its safe haven status to the precious metal as the year unfolds.
- Inflation – Central banks like RBI prefer to control inflation over preserving growth momentum. In the case of growth slowdowns, gold has traditionally performed well. Gold has delivered well during five out of the last seven recessions. If inflation softens, retail demand for the precious metal may subside. However, 2022 saw a timid institutional demand for gold. Declining business yield may cause the institutional demand for gold to rise in 2023.
- Interest rates – Experts expect a pause in the relentless interest rate hike. This can make gold a preferred choice of investment. Being interest-free investments, precious metals lose their shine in the market when interest rates increase.
To Sum Up
The Chinese demand for gold will drive its prices, particularly during Chinese New Year and Golden Week. A de-escalation in Ukraine and increased purchases by central banks will further drive the price up, but that’s up for speculation at the moment. Experts are more positive about silver compared to gold forecast. This is because, in the case of the silver price, industrial demand has a major influence. Silver is used extensively in photovoltaic power and automobile. Considering the increased investment in solar projects and surging demand for electric vehicles, the silver price can rise in 2023. Investors can follow a strategy of buying in dips as per their preferred gold silver ratio while monitoring the bullion market regularly.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.