Commodity Talk: 25% returns in CY24 so far, can gold hit Rs 1 lakh in 2025? Kaynat Chainwala answers
2024 has been a landmark year for the yellow metal, with Comex gold soaring over 40% from its yearly lows while MCX gold mirroring this trend and climbing by more than 25% year-to-date, driven by strong physical demand, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities. While President-elect Donald Trump's tariff and tax cut policies remain a challenge, gold's role as a hedge against inflation, political instability, and economic uncertainty positions it well for the coming year, she adds. Edited excerpts:
Q1: What is your assessment of bullion's performance in CY24 vis-a-vis other commodities and has it achieved its targets of this year that you had estimated?
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-116538547»>The year 2024 has been a landmark year for the yellow metal, with Comex gold soaring over 40% from its yearly lows to reach an all-time high of $2,801.8 per ounce in October. On the domestic front, MCX gold mirrored this trend, climbing more than 25% year-to-date, driven by strong physical demand.
Several factors contributed to this surge in Investor interest, including the US Federal Reserve’s rate cuts, escalating geopolitical tensions, and unprecedented demand from central banks.
Meanwhile, COMEX Silver prices have risen from its February lows of $21.975 per ounce to a 12-year high of $35 in October. The upward momentum was fueled by falling interest rates and increased demand for safe-haven assets, along with robust industrial demand and a supply deficit. The global silver market is set to record a physical deficit for the fourth
