[ad_1]
Gold-Silver Outlook 2023: Looking at the movement of bullion market, one thing seems clear that no roller coaster ride would have seen as many ups and downs as bullion market or bullion market has seen in the year 2022. Both gold and silver precious metals have kept the investors completely puzzled. Comax Gold made a high of $1935 this year and Comax Gold also saw a low of $1630. On the other hand, silver showed a high of $25 on Comax and a low level of $18.
Viewpoint of Motilal Oswal Financial Services Ltd.
Motilal Oswal Financial Services Limited Of currency and commodities of segments Senior Vice President Navneet Damani It is said that since the beginning of the year, on the basis of today’s date, internally both the precious metals have given a 2 per cent fall in gold and 2 per cent rise in silver. If we look at the volatility of metals, it depends on some factors such as – rise or fall in the dollar index, volatility in bond yields, tight monetary policy by the world’s central banks, fear of rising inflation, geo- Political tension etc. has increased this instability. However, the domestic story of the country is somewhat different in which there were not many major developments on the Multi Commodity Exchange while the domestic currency Rupee saw a significant fall against the dollar. Apart from this, an increase of up to 5 percent has been seen in the basic custom duty of gold and its effect also came on the bullion market.
How was the beginning of the year 2022 – what was the effect
The year 2022 started with signs of slowing down of the Corona epidemic and its effect on inflation. However, the events took a dramatic turn and war broke out between Russia and Ukraine, which caused panic in the markets. The war raised concerns on the supply chain front and due to this the global inflation rate started increasing. Amidst rising inflation rate, the major central banks of the world started tightening their monetary policy. In this sequence, he started the process of increasing the interest rates, which was first taken forward by the Bank of England, then by the Federal Reserve and recently by the Bank of Japan. All these banks are still exploring the possibility of increasing interest rates but are also considering the scope of easing monetary policy. The effect of all this was that there was a rally in the dollar index and its effect was also seen on the assets considered as safe havens.
Effect of increase in inflation rate
The effect of inflation rate was seen on all the global markets and to reduce its effect, all the central banks were engaged with almost full force and kept trying to bring it within their tolerance. By the second half of this year, their focus remained on the growth rate as the fear of economic recession started deepening in many economies of the world due to the impact of tight monetary policies. The International Monetary Fund, the World Bank, also raised concerns about the rate of growth for the next year and its impact came in the form of a reduction in several of their growth rate forecasts.
ETF gave good returns
Where the Exchange Traded Fund (ETF) disappointed the market this year as well and in this sequence SPDR Holdings has given a negative return of 6 per cent till this year. Equally, silver holdings have also given negative returns of 12 per cent. It is worth noting that to raise the overall sentiment of the bullion market, the rise in ETFs is also very important. However, on the domestic front, Gold and Silver ETFs have performed well and Gold ETFs have given 12 per cent and Silver ETFs have given 15 per cent returns to their investors, which can be said to be good.
for gold and silver year 2023 What is the outlook of
In the year 2022, there has definitely been an improvement in the participation of investors in the market and the same has been seen in the gold and silver market as well. However, due to the Russia-Ukraine war, concerns about inflation have increased and fears have also increased due to the increase in Kovid cases in China. This will affect the market and investors will enter next year with this burden. Apart from this, next year the participants of the market will focus on the monetary policy outlook of the central banks. Investors will also pay attention to the movements of the dollar index and bond yields. Gold/silver ratio has seen a decline in recent times from 97 to 75, which has come with the help of silver. For silver, we can say that due to green technology and high industrial demand, silver prices may continue to rise.
How far will the prices of gold and silver go?
From the beginning of the year 2022, we had believed that silver can perform better than gold and we can clearly see this by comparing their prices. Looking at our last quarter chart, we had kept medium term target for gold at Rs.53,000 and for silver at Rs.64,500 which has been achieved recently. Now we are seeing some exhaustion trend in both the precious metals, however we can consider this fall as a good buying opportunity and can be a great opportunity for medium to long term investors. For medium to long term investors, the gold target can be seen at Rs 58,000 and the silver target can be seen first at Rs 73,000 and then up to Rs 82,000.
read this also
[ad_2]
Source link