Emkay Global Financial Services expects the gold prices to continue to move higher from current levels. After having posted double-digit gains in 2022, Gold has gained 3 percent in January.
“The current setup seems to indicate a re-run of 2022. Gold seems to be poised to open a new chapter in terms of its price trajectory,” stated the Emkay note.
The gold price outlook for February 2023 from Emkay Global, highlighted that gold prices are poised to climb on the back of persistent recession fears, continued institutional buying of gold, and the growing demand from China as the country opens up its economy, which will push prices higher.
China accounts for 30 percent of the global jewellery demand alone and a recovery is expected in the face of the government opening up the country from COVID-19 restrictions.
With strong support levels at $1,860 per ounce and $1,830 per ounce, prices may see an occasional dip due to a revival in the Dollar Index which may head towards 103-106 levels, the note added.
“These dips may be opportunities to initiate fresh exposure to gold,” the Emkay Global note said. The research note suggests short-term exposure in gold can be taken through gold funds with a one-year time horizon, while Sovereign Gold Bonds (SBGs) can help investors looking for more long term exposure.
