Nifty 50, Sensex hit record high but gold, silver outshine key indices of Indian stock market in YTD. Here's why?

livemint.com:

stock market, the Nifty 50 index has risen 4.65 percent in 2024, the BSE Sensex has surged 3.83 percent whereas the Bank Nifty index has risen nearly 1.56 percent this year. So, it is clear that despite all these assets climbing to a new peak in 2024, gold and silver have outshined the key benchmark indices of the Indian stock market in YTD time.

According to the stock market and commodity market experts, gold and silver prices have outshined the Indian stock market for two major reasons — the US Fed rate cut buzz and continued gold accumulation by central banks across the world. They said that triggers that worked in fueling equities have supported gold and silver price rallies but the factors related to global uncertainties like geo-political tension in the Middle East have added extra fuel to the bullion market's rally.

Speaking on the gold and silver price rally in 2024, Sugandha Sachdeva, Founder of SS WealthStreet said, "Gold has witnessed an outstanding run, with an increase of 13 percent year-to-date, while silver has gained over 8 percent. The Nifty and Sensex have also performed well with returns of around 4.7 percent and 4 percent, respectively.

The Indian economy is thriving, with robust macroeconomic fundamentals, positive global market sentiment, strong FPI inflows, greater domestic participation, and optimism about political stability," adding, "However, the precious metals have outshined, thanks to the hopes of monetary policy easing by the US Fed in 2024 and continued gold accumulation by central banks. Gold's enduring appeal as a safe-haven asset, amid lingering geopolitical uncertainties and concerns about a global growth slowdown, has also contributed to its strength.