"The yellow metal has already posted over three per cent gains in the month of January, 2023. The current setup seems to indicate a re-run of 2022. Gold seems to be poised to open a new chapter in term of its price trajectory," Emkay Global Financial Services said in a report.
According to Quantum Mutual Fund report, gold started the new year on a cheery note, up about six per cent in January in dollar terms and about four per cent in rupee terms.
Underpinning the rally was annual
In the last one year, gold purchases in the international markets was about 4,000 tonne of which 1,400 tonne took place in the last quarter, said Emkay Global.
Apart from institutional buying, jewellery demand in China revived with the Covid restrictions being relaxed there. China is one of the biggest consumers of gold, accounting for over 30 per cent of global jewellery demand, Emkay Global said.
"The yellow metal benefitted from a softer USD environment and lower US Treasury yields. Physical demand from China during the Lunar New Year celebrations, central bank gold buying and increase in net long positioning in gold by global money managers also supported prices,a Quantum Mutual Fund said.
The general expectation that there will be a slowdown in economic activity in the major economies also is helping gold though the high inflation never propelled gold to higher levels, said Emkay Global.
In India, with a duty cut now out of the picture for the foreseeable future, down moves in gold on account of that are no longer expected. But prices could see some headwinds from developments on the
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