The three probable scenarios for Gold in 2023, according to Quantum AMC

Gold as an asset class, which remained under pressure for most part of 2022, may make a comeback in 2023 as economic slowdown globally turns investors risk-averse, according to Quantum Mutual Fund.

Gold prices approached an all-time high of around $2,070 in March 2022 on the back of risk-aversion triggered by the Russia-Ukraine war. But later, as the geopolitical risk subsided and the US Federal Reserve initiated its tightening spree to combat sky-high inflation, prices faced heavy downside pressure.

For Indian gold investors, returns will be impacted by the trajectory of the Indian rupee that is likely to be under pressure.  “The Fed is expected to hike further, albeit, at a slower pace, RBI policy cycle is near peaking, recession-induced risk aversion could drive foreign money home, and higher commodity prices threaten to push up the import bill.

"This will be positive for domestic gold prices,” Quantum AMC said.