Commodity outlook: Gold price seen to touch ₹62,000, silver ₹80,000 in 2023, says ICICIdirect | Mint – Mint

In 2022, base metal prices experienced a roller-coaster ride due to uneven global economic growth and China’s limited trade participation. A deficit in the global base metals market is anticipated in 2023 as a result of supply restrictions from significant manufacturers. Due to the weaker dollar, potential growth in Chinese consumption, and declining inventories, the base metals market is anticipated to demonstrate positive momentum in 2023, said ICICIdirect.

Among other commodities, the brokerage sees copper to rally towards ₹850/ kg whereas aluminium to remain elevated towards ₹260/ kg. For Zinc, it sees to test the price at ₹350 per kg, and crude prices could remain relatively stable in 2023.

As per ICICIdirect, despite the Russia-Ukraine war, the crude oil market has suffered greatly in 2022 since production and demand were nearly balanced. With China reopening in 2023 and OPEC cutting back on oil production, global oil consumption is projected to rise once more. As COVID-19 limits are loosened, mobility will likely grow, which would in turn boost China’s imports of crude oil. 

“Due to the IMF’s revised global GDP prediction, reducing inflation, the halt in interest rate hikes, the weakening dollar, and China’s reopening, the global commodities market is anticipated to exhibit a mixed trend in 2023 and the global economy is currently experiencing a slowdown. This is likely to have a mixed effect on the commodities market,” ICICIdirect report said.

It added that the aforementioned variables are predicted to benefit the gold and silver markets, with gold possibly emerging as a safe haven asset and silver possibly luring purchases from the industrial sector.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.