Gold lags Nifty 50 in last 6 months; what's the future outlook for bullion? Here's what experts say
Outlook 2024: Can gold maintain its shine next year? Here's what experts say "As the expectation of sharp rate cuts has been one of the prime drivers of this rally, gold traders want to validate their rate expectations with the key US data as the year rolls on," said Praveen Singh, Senior Fundamental Research Analyst- Currencies and Commodities at Sharekhan By BNP Paribas. At this juncture, analysts are positive about the prospects of gold for the year amid macro uncertainty, geopolitical tensions and the expectations of rate cuts.
Rate cuts will put pressure on the US dollar which could boost gold prices. Also Read: 'Gold price may touch ₹72,000 per 10 gm in 2024' "Gold prices and the Dollar Index (DXY) have an inverse relationship.
Growing expectations of a rate cut by the Fed of 25 basis points as early as June 2024 would put pressure on the dollar index, which may ultimately serve as a significant trigger for gold prices in the upcoming year. Furthermore, the current geopolitical environment, slowing global growth, and economic uncertainties further strengthen the appeal of gold as a safe-haven asset," said Rahul Jain, President and Head of Nuvama Wealth.
Also Read: Outlook 2024: What are the expectations from the yellow metal and gold loan market? Sunil Subramaniam, MD and CEO of Sundaram Mutual is positive about gold considering macroeconomic uncertainty in the US and expected rate cuts by the US Fed. "We remain positive on gold in view of the US Economic slowdown, extended rate cut cycle over the next three years and central bankers shift away from the US dollar, especially among the BRICS+ countries," said Subramaniam.
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