A yellow glow is likely to stand out amid grey geopolitical clouds in 2023, with gold price projected to touch Rs 60,000 per 10 grams in the Indian market as more investors veer towards safe-haven assets.

In a year where volatility was more a norm than an exception, gold prices in the international market oscillated from a peak of $2,070 per ounce in March to a low of $1,616 per ounce in November and is steadily recovering since then, according to market experts.

At the beginning of 2022, prices were around $1,800 an ounce. At present, the yellow metal is hovering around $1,803 an ounce on international markets and Rs 54,790 per 10 grams on commodity stock exchange MCX at a time the rupee is at near 83-level against the dollar.

Going forward, a raft of factors, including geopolitical situation, recession concerns, inflation trends and low appetite for crypto assets are expected to boost prices since the yellow metal is always considered as a safe haven in uncertain times.

“Gold in the international market is expected to trade in a range of $1,670-2,000 with a positive bias in 2023. On the MCX, gold may trade in a range of Rs 48,500-60,000,” said Kotak Securities vice-president and head commodity research Ravindra V Rao.

While the demand for goldis likely to be resilient in 2023, Rao said further tightening of interest rate by the US Fed could cast a dark shadow on prices at least in the first quarter of next year.

“Physical demand for gold bars and coins remains strong, spurred by ongoing inflation concerns and geopolitical and financial market risks.

Inflows in gold Exchange Traded Fund (ETF) might start gaining momentum as the Fed is likely approaching the final leg of rate hikes in the current cycle,” he noted.

Market experts opined that Russia-Ukraine conflict led to a short-term spike in gold prices before it began falling amid stronger dollar and spike in crude oil prices.