Gold Set to Recoup its Safe Haven Assets Title from Dollar in 2023

SEATTLE (Scrap Monster): According to latest research report published by ICICI Direct, the commodities market in 2023 is likely to be driven by tempered dollar, softened inflation and pause in bank interest rates. It expects gold and silver markets to be the biggest beneficiaries during the upcoming year.

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As per the brokerage house, gold will regain its safe haven assets title from the dollar in 2023. The silver demand is expected to see significant boost, driven by rising demand from industrial sector. ICICI Direct predicts gold prices to hit INR 62,000 per 10 gram and silver prices to hit INR 80,000 per kilogram in 2023. Furthermore, it expects commodities such as zinc, copper, aluminum and crude oil to record gains next year.

The predicted growth in Chinese economic growth in 2023 is expected to boost the demand for the yellow metal. Also, concerns over global economic growth and geopolitical tensions across the world will continue to make gold a valuable asset, which can serve as a hedge against uncertainties.

The jewellery demand as well as the investment demand is expected to stay positive during the year. The central banks are likely to add to their gold reserves. The gold ETF demand, which reported decline in 2022, is expected to gain pace in 2023, which in turn may support gold prices.