Srivatsava Ganapathy

Gold prices were more volatile in 2022 compared to 2021, although it averaged almost the same as in 2021. As we advance into 2023, the challenges of 2022 still remain. There is no end in sight to the Russia-Ukraine conflict. Inflation is retracting a bit from multi-decade highs, but still, it is reasonably high. Central banks may go in for a few more rates hikes. This might affect finance costs for corporate and asset allocation decisions for investors. Recession in Europe and most other economies is probable. COVID is still making headlines. Gold may get supported in H1 of 2023 before it retreats.

The silver price has spanned $12 during 2022, reflecting a higher degree of uncertainty. 2023 should see a revival of economic activity in China. Higher inflation rates are likely to prevail. Although, interest rate hikes may soon end, the impact of higher interest rates on financing and liquidity will be significant. The thrust on solar initiatives is likely to accelerate. Challenges include the ongoing Russia-Ukraine conflict, likely recession and its impact in the West, and geopolitical situation. Our model predicts a stable silver market in 2023 with an average price of $24.8 per troy ounce.