CHENNAI: Amidst geo-political tensions and interest rate cuts, gold prices are projected to gain more than Rs 2500 per 10 gm till December-end and touch Rs 80,000 by March. Having provided steady returns of 20.59 per cent since the beginning of the year, gold has outperformed the equity markets, which have also remained highly volatile.
Gold has proved that it is the best hedge during uncertainties by providing returns of 20.59 per cent since January 1, 2024 when prices stood at Rs 63,225. Gold at the Multi Commodity Exchange was trading around Rs 76,000 per 10 gm on Thursday.
On a year-to-date basis, Sensex returned 14.20 per cent and Nifty 16.19 per cent. Even silver provided a much higher return of 23.20 per cent.
“The equity markets have remained highly volatile this year. They have seen heavy corrections during the elections and the budget. However, gold has remained relatively steady and it has proved to be the best asset class during uncertainties,” said Ajay Kedia, MD, Kedia Commodities.
With the global uncertainties, including geo-political tensions like the Iran-Israel conflict looming large over markets, gold is expected to be looked upon as the best hedge.
“Geopolitical tensions, weak dollar, interest rate cut, central bank buying and ETF buying are the main factors that will support gold in the coming months,” he said.
Gold is expected to move up to Rs 78,500 per 10 gm by the December-end and this will see international prices at $2850 per ounce against $2650 now. As prices further surge to $3000 by March, gold prices might touch another milestone of Rs 80,000.
Goldman Sachs on Monday too has raised its gold price forecast to $2,900 per ounce from $2,700 per ounce for early 2025.
