Business

Gold to stay in the limelight as several nations head to the polls this year

Gold prices have been steadily rising in the year 2024, outperforming the broader equity market by 6 per cent, according to Naveen KR, smallcase Manager & Senior Director, Windmill Capital. With a series of elections ahead, investors are turning to gold as a safe haven asset amid global uncertainties.

Navneet Damani, Senior VP, Commodity Research at Motilal Oswal Financial Services, highlighted that gold is maintaining its all-time high levels due to the weakened Dollar and uncertainty over U.S. interest rate cuts. Additionally, silver has also reached record highs domestically, following the trend set by gold amidst a strong rally in industrial metals.

Geopolitical tensions in the Middle East and the ongoing conflict between Russia and Ukraine have led to an increased demand for safe haven assets like gold and other precious metals. Despite mixed comments from Fed officials about the pace of interest rate cuts, Governor Powell suggested that interest rates have peaked for this cycle, indicating continued support for gold prices.

The market remains cautious as economic data from the US fluctuates, but the overall sentiment towards precious metals like gold and silver remains positive. With a strong institutional buying trend and ongoing global uncertainties, gold is likely to remain in the spotlight throughout the year, providing stability in a volatile market.

IANS

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