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Gold Returns: Gold has broken records amid the festive season. The price of gold in the domestic market has crossed Rs 77 thousand per 10 grams. This situation has arisen when the import duty on gold has been reduced from 15 percent to 6 percent. Kedia Advisory estimates that without this cut, gold prices on MCX would have been Rs. Must have crossed 80,000.
Gold prices have reached a record high of $ 2,727.20 per ounce in the domestic and international markets. Gold has achieved the highest annual growth ever.
If we look at the data of the last four and a half decades i.e. 45 years, the highest rise in gold has been recorded in the year 2024. According to the current prices in the international market, the price of gold has increased by 31.33% this year.
There are still more than 2 months left for this year to end. If the price increases even during this period, then gold will achieve an unbreakable record in the international market.
Earlier in the year 2007, the price of gold had increased by about 31 percent. The price of gold increased by 29.61% in 2010, while the price of gold increased by 25.09% in 2020. Apart from these four years, gold prices never increased by more than 25 percent.
Gold is at record levels in domestic markets. Gold touched a new record level of Rs 77,641 per 10 grams on MCX. At the same time, according to the Indian Bullion and Jewelery Association (IBJA), the price of 24 carat gold in the bullion market is Rs 2.55. It is running at Rs 76,810 per 10 grams.
Many reasons behind the rise in gold
There are many reasons behind the current rise in gold prices. Global demand for safe assets has supported the rise in prices amid expectations of further interest rate cuts by central banks. Apart from this, due to increasing tension in the Middle East, gold prices are also increasing. In such a situation, by the end of this year the price of gold will become Rs 2.5 lakh. The level of 79,000 may be crossed.
According to Cadia Advisory, gold prices have increased by 22% this year. The highest increase of 31.85% in gold prices in the last 20 years was recorded in 2011. Earlier in 2008, gold prices had increased by 28.61%. In the year 2020, the price of gold increased by 28.24%.
Gold became expensive two and a half times in 11 years
In the last 11 years, gold has become more than two and a half times more expensive. In January 2014, the price of gold was Rs 29,462, which has reached Rs 77,570 in October 2024.
Gold touched a record high of Rs 53,445 in July 2020. Then in December 2020, a slight decline was recorded in the price and reached close to Rs 50,000. After this, in January 2022, the price of gold fell to around Rs 47 thousand but then a rise was seen.
Gold has seen 3 good years since 2014. These years have also been good from investment point of view. Gold gave returns of about 25% in 2019 and about 28% in 2020. Whereas so far this year, gold has given good returns with an increase of 22 percent in 10 months.
According to Kedia Advisory, if the government had not given relief in customs duty in the budget, the price of gold would have been Rs 500. 80,000 would have crossed the 10 gram level. It is likely to arrive by the end of this year.