Gold prices are closing 2022 slightly in the positive in the dollar terms and substantial gains in the rupee terms because of the Indian currency's depreciation to the dollar. The yellow metal has seen a high of $2,050 per ounce this year, which almost touched the all-time high of $2,070 per ounce. The low has been at $1,615 per ounce and currently, it is trading at approximately $ 1800 per ounce.
The decline from the high in 2022 was driven by the US central bank, US Federal Reserve, delivering the quickest rate hike cycle ever. The market continues to watch out for the concerns that are coming in from inflation, recession fears, supply slowdown, and geopolitics.
Another worry that is keeping the gold prices on the higher side is the COVID variance still evolving and the numbers increasing globally have been keeping the prices higher as well.
Reports suggest that in the last seven global recessions, gold prices have given you an average return of 20 percent. So if we are looking at a slowdown, weak profit earnings, etc. then gold perhaps is a place to go to.
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Most banks and brokerages have come out with their gold outlook for 2023. The most bearish outlook has come in from Metal Focus at $1,650 per ounce. TD Securities in Canada has given a range of $1,575 to $1,800. Similarly, $1,850 to 1,900 is where Fitch Commerce Bank and Slatestone Wealth expect the yellow metal to trade in the coming year.
When it comes to bullish expectations, Citi expects gold to go to $1,900 per ounce, IFL talks about $1,950, and UBS as well thinks $1,900 is the average.
Nirmal Bang expects $2,000 to be hit again while Saxo Bank expects newer highs at $2,000 to $2,075 on the higher side.
Saxo Bank also expects that if prices break above $2,075 then $3,000 per ounce in case of gold prices is a possibility.
Standard Chartered expects the gold price to touch $2,250 per ounce. Gold prices could surge to $4,000 per ounce in 2023 as interest rates are hiked and recession fears keep markets volatile, according to Swiss Asia Capital.
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