The Russia-Ukraine crisis served as a catalyst for rally in prices of precious metals such as gold, silver and platinum, they remained subdued during the rest of the year.
SEATTLE (Scrap Monster): The Heraeus’ 2023 precious metals outlook report, published in collaboration with UK consultancy SFA (Oxford) Ltd. noted that geopolitical tensions on account of Russia-Ukraine war, persistently high inflation rates as well as rising concerns about recession are likely to play a pivotal role in the precious metals market during the current year.
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The Russia-Ukraine crisis served as a catalyst for rally in prices of precious metals such as gold, silver and platinum, they remained subdued during the rest of the year. The slower economic growth predicted in major economies coupled with fears of a recession in the U.S. and Europe will likely weigh on precious metals demand, the report said.
Although fears of fresh Covid-19 pandemic outbreaks are less likely in most countries, the recent surge in cases in China and the restrictions thereafter could lead to slowdown in economic growth, which in turn may impact precious metals demand.
Heraeus foresees continued hike in interest rates and renewed strength in dollar in 2023, driving investors away from metals. However, a change in stance by the Fed, triggered by a weakening economy, could result in weaker dollar and potential price gains for gold and silver in 2023.
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