Experts Predict Gold Prices Likely To Touch Rs 60,000 In 2023: Report

Gold began with Rs 47,850 per 10 grams at the Multi Commodity Exchange (MCX). It rose to a peak of Rs 55,680 per 10 grams in March, then touched a low of Rs 48,950 per 10 grams in September

As of now, the price of Gold is Rs 54,790 per 10 grams on the commodity stock exchange MCX.

Source : Getty

Gold prices are projected to touch Rs 60,000 per 10 grams in the Indian market, according to a PTI report. As of now, the yellow metal price is Rs 54,790 per 10 grams on the commodity stock exchange MCX, with the rupee at near 83-level against the US dollar. In the international market, it is around $1,803 an ounce. 

At the beginning of 2022, gold prices were around $1,800 an ounce. According to market experts, gold prices in the international market traded between a peak of $2,070 per ounce in March to $1,616 per ounce in November. It has been recovering ever since. 

Gold began with Rs 47,850 per 10 grams at the Multi Commodity Exchange (MCX). It rose to a peak of Rs 55,680 per 10 grams in March, then touched a low of Rs 48,950 per 10 grams in September.

In the upcoming year several factors, including geopolitical situation, recession concerns, inflation trends, and low appetite for crypto assets, are expected to boost gold prices as it is considered a safe haven in uncertain times.

“Gold in the international market is expected to trade in a range of $1,670-2,000 with a positive bias in 2023. On the MCX gold may trade in a range of Rs 48,500-60,000," Kotak Securities Vice President and Head Commodity Research Ravindra V Rao told PTI. He added that tightening of interest rates by the US Federal Reserve could cast a dark shadow on yellow metal prices at least in the first quarter of next year.

"Physical demand for gold bars and coins remains strong, spurred by ongoing inflation concerns and geopolitical and financial market risks. Inflows in gold Exchange Traded Fund (ETF) might start gaining momentum as the Fed is likely approaching the final leg of rate hikes in the current cycle," he said.

The Russia-Ukraine war led to a short-term spike in gold prices. They began falling amid a stronger dollar and a spike in crude oil prices.

"We expect prices to test $1,885 at least in the international markets and Rs 57,000 per 10 grams in MCX with present factors at hand. Any fresh geopolitical tensions could boost prices further. The technical picture, however, is not that conducive for a retest of highs around $2,000 in the international markets while the rupee weakness could push domestic prices above all-time highs of Rs 56,370 per 10 grams," Commtrendz Risk Management Services CEO Gnanasekar Thiagarajan said.

The World Gold Council (WGC) MD for India Somasundaram PR said high gold prices and a sharper focus on the Current Account Deficit (CAD) will support imports for growth in priority sectors may put gold under policy pressure in 2023.

"Gold demand will, however, be driven by factors supporting long-term price performance and portfolio balancing even as sentiments about India's economic growth will remain hugely positive for the stock markets in 2023," he said.