Gold to touch Rs 62,000; silver will hit Rs 80,000 in 2023: ICICIdirect

India's leading broking firm ICICIdirect expects gold to touch Rs 62,000 per 10 gm, while silver will reach Rs 80,000 per kg in 2023.

"In 2022, base metal prices experienced a roller-coaster ride due to uneven global economic growth and China's limited trade participation. A deficit in the global base metals market is anticipated in 2023 as a result of supply restrictions from significant manufacturers. Due to the weaker dollar, potential growth in Chinese consumption, and declining inventories, the base metals market is anticipated to demonstrate positive momentum in 2023," said ICICIdirect.

Meanwhile, the gold price in India rose about 13.8% to Rs 54,730 in the calendar year, while the silver price increased 9.9% to Rs 68,870 per kg in the same year.

Apart from gold and silver, brokerage firm ICICIdirect sees copper, aluminium and zinc prices rising by 17.4%, 24.76% and 28.49%, respectively, in 2023.

“Due to the IMF's revised global GDP prediction, reducing inflation, the halt in interest rate hikes, the weakening dollar, and China's reopening, the global commodities market is anticipated to exhibit a mixed trend in 2023, and the global economy is currently experiencing a slowdown. This is likely to have a mixed effect on the commodities market,” ICICIdirect report said, adding that the aforementioned variables are predicted to benefit the gold and silver markets, with gold possibly emerging as a safe haven asset and silver possibly luring purchases from the industrial sector.

ICICIdirect report also stated that, despite the Russia-Ukraine war, the crude oil market has suffered greatly in 2022 since production and demand were nearly balanced. With China reopening in 2023 and OPEC cutting back on oil production, global oil consumption is projected to rise once more. As COVID-19 limits are loosened, mobility will likely grow, which would in turn boost China's imports of crude oil. On this background, the price of MCX crude oil futures is projected to increase towards Rs 7,850 per barrel.

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