Gold, the Ultimate Asset for Optimal Earnings in the Next Twelve Months

Gold may witness a return of around 21% in the coming year.

Currently, it is priced at INR 32,000 per 10 grams, but experts anticipate it reaching up to INR 60,000 by the end of 2024. This potential surge is attributed to various factors, including global economic crises, increased central bank purchases, geopolitical tensions like the Russia-Ukraine conflict, and a decline in the value of the US dollar.

The recent rise in gold prices can be attributed to:

Global Banking Crisis:

The instability caused by the global banking crisis has strengthened gold's position as a reliable investment.

Central Bank Purchases:

Significant purchases by major central banks, especially the People's Bank of China, have provided substantial support to gold prices.

Geopolitical Uncertainties:

Ongoing conflicts such as the Israel-Hamas conflict and the Russia-Ukraine war have increased uncertainty worldwide, prompting a shift towards gold as a safe-haven asset.

Increased Demand in Domestic Markets:

Robust demand in the domestic market, especially during the festive season and wedding-related purchases, has further contributed to the rise in gold prices.

The foundation for the increase in gold prices is also supported by the fact that 24 central banks worldwide plan to increase their gold reserves by 24% in the next year. The de-dollarization trend and efforts to reduce dependency on the US dollar play a role in this strategy.

China, with its plans to acquire 3,000 tons of gold, is expected to contribute significantly to the rise in gold prices. Currently, the US holds 69% of global gold reserves, followed by Germany with 68%, and Russia with 25%.

In conclusion, gold appears to be a promising asset for substantial returns in the upcoming year, driven by a combination of global economic factors, central bank actions, geopolitical tensions, and increased demand in domestic markets. Investors may find it prudent to consider gold as a key component of their portfolio in the coming months.