Gold, Silver Outlook 2023: Buy precious metals in H1 to get bumper returns in H2 of next year, say analysts – Check support, resistance levels

Gold, Silver Outlook 2023: The precious metals – Gold and Silver – are likely to continue sluggish momentum in the first half of 2023 as same as this year, making a perfect time to Buy, while it may give bumper returns to the investors as the year progresses in the second half, several analysts said in their expectations.

The gold and silver, which were able to post decent performance this year on the domestic front, are likely to see levels of Rs 63,000 per 10 gram and Rs 84,000 per kg, respectively, next year on the back of multiple positive factors, including pause on rate hikes by the central banks, globally.

In 2022 so far, Gold reported growth of around 14 per cent and Silver surged by 10 per cent on the domestic front. On the contrary, both these precious metals have registered muted performance on the global fronts, as per the analysts.

We have collated views from different experts as to what investors should do, with respect to Gold and Silver:

Expert: Ravindra V Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd

Gold might finally get the recession it needed to glitter in 2023. Together, with a looming recession, reasonably higher inflation, a falling dollar, and a highly uncertain geo-political situation, gold is expected to perform well in 2023.

Investors should buy the dips as Fed tightening might cast a dark shadow until at least Q1 2023. Gold in the international market is expected to trade in a range of $1670-2000/oz with a positive bias in 2023. On the MCX Gold may trade in a range of Rs. 48500-60000/10 grams.

The demand outlook for silver remains solid amid the global green energy push, boosting its industrial demand. Silver might trade in a range of $19/oz - 30/oz in 2023, with an upside bias. Silver on the MCX may trade in a range of 55000-84000/kg.

Expert: Naveen Mathur, Director – Commodities and Currencies, Anand Rathi Shares and Stock Brokers

Moving ahead, in 2023 gold could continue to remain volatile in the initial half with a positive bias as the following factors mentioned could determine the price moves.

· Inflation has peaked in 2022 with Dollar Index also likely peaked in Oct 2022

· Markets pricing in cuts for H2 2023 which is positive factor for gold prices.

· Inverted yield curve showing negative differentials in US 10-year – 2-year yields

Looking at the above factors, Investors must continue to accumulate Gold at lower levels in H1 2023 for positive returns to be expected in H2 2023. On lower side, MCX Gold may witness supports at around Rs. 52500 per 10 gm levels on MCX in February futures contract while on the higher side prices may continue to rise upto Rs 56,500 – 57,000 / 10 gm levels.

On the other side Silver could continue to outperform Gold in 2023 as demand from industrial side along with slowdown concerns could lead it to higher returns. On the lower side, investors should continue to accumulate MCX Silver at around Rs 60000 – 63000 / Kg, while on the higher side we can expect Rs 75000 – 78000 / Kg levels in futures contract during H2 2023.

Expert: Ajit Mishra, VP - Technical Research, Religare Broking Ltd

A decisive breakout above Rs 55,400 for gold at MCX would fuel fresh momentum. It may test the 57000/10gm zone first and then march toward the 64000/10gm zone. Any dip around the 52000-53000 zone can be considered as an opportunity to accumulate fresh. This view would negate if gold decisively breaks the Rs 49,000/10gm zone.

Apart from being a precious metal, Silver has industrial usage also and we expect the demand to remain strong in 2023. Investors can accumulate on dips within the 63000-65500 zone for the upside potential of 70900-75000 levels.

Expert: Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart Ltd. 

Bank of Japan’s adjustment for band bond yield while US Feds slowed the rate hike pace and European Central bank to hike the interest rate, creating global uncertainty over global economic performance. Haven demand is likely to be higher in 2023, while prices of Gold in the domestic market may move towards Rs 58500 per 10 grams. Silver may test the level of Rs 76000 per kg.