Gold has delivered returns of over 20% in 2024, which is not only higher than the returns given by headline indices Nifty and the BSE Sensex in the period but also superior to its own performance in the previous two years. A fragile geopolitical order, central bank buying and economic headwinds across the globe have kept the yellow metal on the boil. It is, however, up against formidable challenges in the form of strengthening US dollar and cryptocurrencies in 2025, opined experts.
Nifty and Sensex gains so far this year have been to the tune of 12%.
The continuing uptick in the gold prices for the last seven quarters has been stimulated by the evolving global economic and geopolitical scenario, and rising investment demand for gold, ICRA said in a note, adding that the average gold price has risen by a sharp 25% this fiscal year vis-à-vis FY2024 average price, despite occasional corrections.
A look into previous five years' performance of gold reveals that the yellow metal has delivered nearly 15% returns in 2023 while giving 14.38% in 2022. In 2019 and 2020, gold prices surged by 24.59% and 28.24% while in 2021 they fell by Rs 4.09%.
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