With 20% return, gold outshines Sensex since last Dhanteras. Is yellow metal the safest sparkler?
Dhanteras today, gold investors would be sitting on near 20% returns accrued by the yellow metal since last Dhanteras. As an asset class, yellow metal has outperformed its equity market peers in Nifty and the BSE Sensex during this period.
Gold's returns are neary two-fold in comparison to Nifty and Sensex which have delivered returns of 10.34% and 9.31%, respectively, since last Dhanteras which fell on October 22, 2022.
On October 21, 2022, the price of MCX gold futures was near 50,000, while Sensex and Nifty stood at 59,307.15 and 17,576.30.
Gold's haven appeal is expected to remain strong amid geo-political tension, uncertainty over interest rate regime and next year's general elections in India and the US.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart expects MCX prices to move towards Rs 64,000 to Rs 66,000 levels in 2024 with a crucial support lying at Rs 56,000.
As for MCX silver contract prices, they could test levels between Rs 78,000 and Rs 80,000 per kg levels in the upcoming year.
The above estimates translate into a 10% uptick in gold while a 13% gains in silver over the current market price of both precious metals i.e. Rs 60,267 in the former and Rs 71,450 for the latter.
In comparison, a recent report by Morgan Stanley said that Sensex and Nifty50 could rise up to 10% in the run up to general elections in April 2024 in anticipation of continuity and a majority for the incumbent according to the report.
