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Why gold price surged 13% in 2023? Experts list out these 5 reasons
Gold has delivered 3% return in MTD while Nifty 50 index has risen to the tune of 8.50% in this time Despite dominating other assets throughout the year, gold return in year-to-date (YTD) time missed to beat stock market return in 2023. Thanks to recent Santa rally ahead of Christmas, which enabled Nifty 50 index to registere 8.50 per cent rise in last one month, which lifted 50-stock index return to near 18 per cent in YTD time. Though, the precious yellow metal also witnessed some buying interest in last one month, its return in month-to-date (MTD) is around 3 per cent only. However, a return of 13 per cent in YTD is enough for a gold investors to bring smile on its face. According to commodity market experts, US banking crisis, geo-political crisis, US Fed's rate pause stance were among some important triggers that helped gold to remain an investor's haven throughout the year. They said that gold prices are expected to remain in uptrend as US Fed has hinted end of high interest rate cycle and cut interest rates thrice in 2024. Gold vs stock market Speaking on gold price return in 2023, market expert Sugandha Sachdeva said, "Gold proved its timeless allure in 2023, reaching a record high of Rs. 64,460 per 10gm and outshining major indices like Nifty and Sensex for most of the year. Prices surpassed the previous record high of around $2081 per ounce, entering uncharted territory toward $2,148 per ounce. Though Nifty edged ahead with an 18% year-to-date gain by year's end, gold still remained buoyant and delivered a respectable near 13 per cent return." On why gold return dominated most of other assets in 2023, Amit Goel, Co-founder & Chief Global Strategist at Pace 360 said, "Barring recent Santa rally on Dalal Street after US Fed's signal to cut interest rates thrice in 2023, gold has outperformed Nifty 50 index and most other global equity indices in CY 2023. Investors have been buying gold this year because of fears of an imminent slowdown, which will obviously catapult gold to much higher levels. Central bank buying of gold so far this year to the tune of 800 metric tonnes has also been an important factor. This figure is 14 per cent higher than their buying whole of CY 2022." Source - Mint
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