look news india
Are you blindly investing money in gold? However, in the long run any other metal may outperform gold. That metal is silver. A recent report from Motilal Oswal said that gold and silver have seen returns of 13% and 11% respectively since the last New Year cycle. This series started from Akshaya Tritiya in 2023.
The report said, 'Earlier, supply and demand concerns have not had much impact on gold prices. Especially at a time when there was extreme market volatility. However, the possibility of some softening in prices cannot be completely ruled out due to the recent rise in gold prices.
Many factors can affect gold prices
Apart from this, the report said that many factors can have a positive or negative impact on gold prices. These factors include weaker than expected economic data, increased concerns about growth, expectations of more interest rate cuts this year, geopolitical tensions, concerns over rising debt, rising demand and falling US yields. At the same time, the price of silver is likely to increase due to its usefulness. These factors may not affect him.
It has been said in the report that gold fluctuates more in election years. Apart from this, elections are going to be held in more than 40 countries. America and India are also included in these. Market participants typically anticipate future events, such as a premature interest rate cut by the Federal Reserve. In such a situation, any unexpected major event can boost prices in future. There has been a huge rise in gold and silver since the beginning of 2024.
There were ups and downs regarding these things also
Additionally, it should be noted that the value of gold and silver has increased significantly this year due to geopolitical tensions and the monetary policies of the Federal Reserve. This has caused fluctuations in the bullion market.
According to the World Gold Council, central banks maintained the pace of gold purchases in the first quarter of the financial year 2023-24. This increased the official stock by 290 tonnes.
Additionally, it is also worth noting that demand for bars and coins increased 3 percent year-on-year to 312 tons. At the same time, global jewelery demand declined by 2 percent and stood at 479 tonnes. Central banks, especially the reserve banks of Turkey, China and India, have increased the demand for gold in the first quarter.
Apart from this, Motilal Oswal's report states that since the beginning of the financial year 2023-24, the import of gold and silver has increased to more than 150 tonnes and 3000 tonnes. The increase in imports could be due to reasons such as the Comprehensive Economic Partnership Agreement (CEPA) agreement with the UAE. It provides market participants with 1 per cent tariff rate quota (TRQ) benefit or import duty benefit for other bullion commodities.
