Gold Return in 2024: There is a lot of noise in the stock market but gold has quietly given bumper returns, what will be the trend in 2025?

The year 2024 is about to end and now investors are busy calculating the returns received from different assets this year. The figures are very interesting. Gold has outperformed the stock market in terms of returns this year as well. Gold has given higher returns than the major benchmark index of the Indian stock market. This difference in profit is also quite large. The Nifty-50 index has given a return of about 8.50 percent this year. While the Sensex has given a return of 8 percent. The Nifty Bank Index has given only 5.25 percent return this year. In contrast, gold (MCX Gold) has given a great return of 21 percent this year. At the same time, globally, gold has given a bumper return of 27 percent.

These are the reasons for the rise in gold

US Fed rate cut cycle, geopolitical tensions, purchases by most central banks, rising investor demand and fear of escalation of trade war due to Trump’s victory in the US presidential elections are some of the major reasons that led to the rise in gold. Gold gave good returns in the year 2024 due to the coming together of macroeconomic, geopolitical and investment related factors. Gold has given strong profits to both individual and institutional investors this year. Gold reached $2790 per ounce in the global market. At the same time, it reached a record level of Rs 79,775 per 10 grams in the domestic market. Gold outperformed all other asset classes by giving a return of about 27 percent in the global market and 21 percent in the domestic market.

Will prices increase in 2025 also?

According to experts, gold will continue to be used as a hedge against inflation next year as well. But it will also have to compete with US Treasury yields, forex market and some virtual assets like bitcoin. He said that the Trump factor will be important for both the stock market and gold in the year 2025, as there is a possibility of trade war increasing. Anuj Gupta of HDFC Securities says that gold will continue to be used as a hedge against inflation in 2025 as well. He said, ‘With the arrival of Donald Trump, there is a possibility of trade war increasing, which will support gold. Trump will take steps towards strengthening the US economy. In such a situation, the US dollar is expected to remain high. Therefore, gold will also face challenges from US Treasury yields and forex market returns. Gold will also have to compete with virtual currencies like bitcoin. However, trade war will increase geopolitical tensions.’