Gold prices will be impacted by Fed moves, geopolitical scenarios and upcoming polls
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A woman buying gold jewellery on the occasion of Dhanteras ahead of Diwali Festival on November 10, 2023 in Amritsar, India.
Synopsis
A weak rupee and higher import duty pushed domestic gold prices higher. A lot of factors will play a role in higher gold prices, including inflation, Federal Reserve moves, the geopolitical scenario, and even the upcoming US presidential election and general elections in India due next year.
In the last 12 months, gold prices in India went up by nearly 25% while the benchmark equity index Nifty 50 is up only 15%. However, the returns on gold investments in India, do not reflect the sentiments in the US market. While the US gold prices have increased in the last 12 months, it is trading at a broad range since it made its peak in August 2022. Since August 2022, the gold prices in the US have been gyrating between USD1,650 to USD1,850.
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