Gold, Silver Expected to Deliver Stronger Returns in H2 2023

SEATTLE (Scrap Monster): According to market experts, gold and silver are expected to continue sluggish momentum during the initial half of 2023, thereby offering a good investment opportunity. Meantime, the yellow metal is likely to give stronger returns during the latter half of the year.

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During this calendar year, gold has gained marginally in dollar terms. The gain in rupee terms was almost 11%. The bullion market had witnessed a roller coaster ride in 2022. While gold had made a high and low of $1,935 and $1,630 respectively, the silver prices had hit a high of $25 and low of $18 on bourses.

According to Colin Shah, MD, Kama Jewelry, gold prices are expected to trade sideways in the first sixth months of the calendar year 2023. The festive demand along with pause in rate tightening by central banks is likely to push gold demand in the second half of the year. The anticipated pause in rate hike cycle will soften dollar, thus making gold and silver purchases cheaper, he added.

The lockdown situation in China following spike in Covid-19 cases may impact gold sales during the Chinese New Year in February, which in turn may drive gold prices. The other key factors that may support higher gold prices include trade tensions between the U.S. and China and possible escalation in geopolitical tensions between Ukraine and Russia.