Gold can give 19% return in one year

Gold has performed well this year despite rising interest rates as well as a surge in the US dollar and bond yields. Gold has given 9% returns so far in 2023, while 20% returns in the last one year. This trend may continue. On October 20, the price of gold in the international market reached a three-month high of $ 1,978 an ounce amid military conflict in the Middle East and diminishing fears of further interest rate increases in the US. This is the highest level of spot gold since July 20.

In the domestic bullion market, gold was Rs 57,415 per 10 grams on October 9, which increased to Rs 60,693 on October 20. Most analysts believe that the US central bank Fed may start cutting interest rates from the second half of next year. This will be the biggest reason for the rise in gold.

Gold gives 100% return in 5 years
The money invested in gold has doubled in the last five years. On August 10, 2018, the price of gold was Rs 29,486, which increased to Rs 58,947 per 10 grams on August 10, 2023.

China will take 3 thousand tons of gold
69% of America's foreign exchange reserves are gold, 68% in Germany and 25% in Russia. If China wants to increase the share of gold in its foreign exchange reserves to even 10%, it will have to buy 3000 tonnes of gold.

Central banks support gold
24% of central banks around the world will increase gold reserves in the next 1 year. Demand for gold will also increase due to de-dollarization. Reducing dependence on the dollar as a reserve currency is called de-dollarization.

Gold has become costlier by more than Rs 2,900 so far in October
So far in the month of October, there has been a tremendous rise in the prices of gold and silver. So far this month, the price of gold has seen an increase of Rs 2,974. At the beginning of this month i.e. on October 1, it was at Rs 57,719 per 10 grams, which is now at Rs 60,693. Whereas silver has come down from Rs 71,603 per kg to Rs 71,991.

The shine of gold is increasing these days due to 4 reasons

• In early May, the global banking crisis and the impasse over debt-ceiling in the US provided strong support to gold prices.
• There will be strong demand for gold in the domestic market till Diwali. Then a lot of gold will be purchased during the wedding season. This is providing support.
• The latest military conflict between Israel and Hamas amid the already ongoing Russia-Ukraine war has increased uncertainty across the world.
• Big central banks, especially the Central Bank of China, are purchasing gold heavily. This provided great support to gold prices.