TomorrowMakers

A look at gold’s rise this year, and what the future holds.

Gold All Time High Price

In the last few days, gold has been trading closer to its all-time high price. 10 grams of 24k gold was priced at Rs 58,025 in the Kolkata market by the close of the first fortnight of January 2023. Gold futures price hit its all-time high of Rs 56,000+ in August 2020 and is hovering in a similar range in the last few days. Even in the international market, the per-ounce price of gold has crossed the $1850 mark.

Also Read: Have idle gold at home? Put them to use with these digital gold schemes

Price Watch

As the rampant run of the US dollar waned, gold prices witnessed steady growth with the start of the new year. There is also a growing expectation that the Fed policy on the interest rate will soften this year. After the rampant rise in 2022, it can be assumed that the interest hike stance will go into a period of dormancy. In the minutes of the Federal Reserve’s December policy meeting, all officials agreed that the aggressive interest rate hikes need to be slowed down.

Recession fears loom large on the US and global economy. This, too, is a factor that will further contribute towards investors' affinity towards the precious metal. The market volatility will enhance gold’s reputation as a safe haven investment. Gold, as an asset, is not correlated to the movements of the stock market. Therefore, it is used as a hedge by investors. 

If the central banks increase their gold purchases, the price of gold can continue to maintain its momentum. Experts noted that the support price for gold lies around $1830 while the resistance price is somewhere between $1855-1868. In rupee value, the support and resistance range will be between Rs 55,520 and Rs 56,250.

Also Read: Should you have gold in your long-term portfolio? Understand the significance of gold from a long-term perspective

Gold Price Outlook

Domestic gold watchers believe that the wedding season demand for gold will continue till June 2023, which will keep pushing the gold rate upwards. Internationally, the interest rate hikes have truncated economic growth and as the dollar weakens, the demand for gold is poised to excel.

The banks have been unanimous in their gold outlook, expecting gold in 2023 to post high prices. Both UBS and Citi have predicted $1900 per ounce, while IIFL has put a price of $1950. Nirmal Bang and Saxo Bank expect gold to cross the $2000 mark. Standard Chartered has gone a step ahead and tipped gold to touch $2250 per ounce in the current calendar year. Keeping the effects of the interest rates and the recession fears in mind, Swiss Asia Capital has said that gold price could surge to a price of $4000 per ounce this year.

Also Read: Should you buy digital gold

Conclusion

An investment in gold has been traditionally seen as a sound use of funds. As a basic portfolio diversification measure, a tenth of your investment in gold and related investments helps you to cushion your portfolio from market uncertainties and reap positive gold performance returns. There are several physical, paper and digital modes of gold investment, like coins, exchange traded funds, gold bonds etc. Choose the one that suits you and capitalise on the upward trend in gold.

Source

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.

In the last few days, gold has been trading closer to its all-time high price. 10 grams of 24k gold was priced at Rs 58,025 in the Kolkata market by the close of the first fortnight of January 2023. Gold futures price hit its all-time high of Rs 56,000+ in August 2020 and is hovering in a similar range in the last few days. Even in the international market, the per-ounce price of gold has crossed the $1850 mark.

Also Read: Have idle gold at home? Put them to use with these digital gold schemes

Price Watch

As the rampant run of the US dollar waned, gold prices witnessed steady growth with the start of the new year. There is also a growing expectation that the Fed policy on the interest rate will soften this year. After the rampant rise in 2022, it can be assumed that the interest hike stance will go into a period of dormancy. In the minutes of the Federal Reserve’s December policy meeting, all officials agreed that the aggressive interest rate hikes need to be slowed down.

Recession fears loom large on the US and global economy. This, too, is a factor that will further contribute towards investors' affinity towards the precious metal. The market volatility will enhance gold’s reputation as a safe haven investment. Gold, as an asset, is not correlated to the movements of the stock market. Therefore, it is used as a hedge by investors. 

If the central banks increase their gold purchases, the price of gold can continue to maintain its momentum. Experts noted that the support price for gold lies around $1830 while the resistance price is somewhere between $1855-1868. In rupee value, the support and resistance range will be between Rs 55,520 and Rs 56,250.

Also Read: Should you have gold in your long-term portfolio? Understand the significance of gold from a long-term perspective

Gold Price Outlook

Domestic gold watchers believe that the wedding season demand for gold will continue till June 2023, which will keep pushing the gold rate upwards. Internationally, the interest rate hikes have truncated economic growth and as the dollar weakens, the demand for gold is poised to excel.

The banks have been unanimous in their gold outlook, expecting gold in 2023 to post high prices. Both UBS and Citi have predicted $1900 per ounce, while IIFL has put a price of $1950. Nirmal Bang and Saxo Bank expect gold to cross the $2000 mark. Standard Chartered has gone a step ahead and tipped gold to touch $2250 per ounce in the current calendar year. Keeping the effects of the interest rates and the recession fears in mind, Swiss Asia Capital has said that gold price could surge to a price of $4000 per ounce this year.

Also Read: Should you buy digital gold

Conclusion

An investment in gold has been traditionally seen as a sound use of funds. As a basic portfolio diversification measure, a tenth of your investment in gold and related investments helps you to cushion your portfolio from market uncertainties and reap positive gold performance returns. There are several physical, paper and digital modes of gold investment, like coins, exchange traded funds, gold bonds etc. Choose the one that suits you and capitalise on the upward trend in gold.

Source

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.