This is an occasion to celebrate for people investing in gold. Gold has given a bumper return of 55 percent between this Dhanteras and the last Dhanteras. In comparison, Nifty 50 has given only 3.5 percent return during this period. Actually, there is a trend in India to buy gold on Dhanteras. It is believed that this brings happiness, peace and prosperity to the house. This time Dhanteras is on 18th October.
Gold made rich this year
for some time now gold There is a tremendous rise in the prices. Central banks of many countries of the world are buying gold. Geopolitical tension has been very high. On the other hand, gold is also getting support due to the expectation of reducing interest by the Federal Reserve, the central bank in America. According to the prices of Indian Bullion and Jewelers Association of October 16, the price of gold is Rs 1,26,338 per 10 grams.
Gold’s shine will increase due to decrease in interest rates
Deveya Gaglani, Senior Research Analyst (Commodities), Axis Securities, said, “On September 17, the US central bank Federal Reserve reduced the interest rate for the first time this year. It reduced it by 25 basis points. It is expected to reduce the interest rate twice more by the end of this year.” The dollar weakens due to falling interest rates in America. This increases the shine of gold. This means that gold will get support due to Fed’s reduction in interest.
Returns increased year after year in the last five years
If we talk about the last 5 years, gold has given double digit returns every year except 2021. It had given 10 percent return in 2022. It had given 20 percent return in 2023. It had given 30 percent return in 2024. In this way, the returns of gold have increased year after year in the last five years. Experts say that despite the prices being at record high, the sentiment in gold is strong.
Higher prices may impact sales
PP Jewelers Director PP Gupta said, “This time on Dhanteras, the volume may be a little less, but the value growth will be good. This year, in terms of volume, sales are expected to be 20 percent compared to last year. But, in terms of value, a good growth of 15-20 percent can be seen. This shows that gold is a reliable source of investment. Gold shines even amidst price fluctuations. Keeps maintained.”
Central banks’ purchases may be 1,000 tonnes this year
Analysts say that the bullish trend in gold will continue. Central banks are at the forefront in purchasing gold. Last year he had bought 1,180 tonnes of gold. This year also their purchase of gold may be 1,000 tonnes. On the other hand, increasing investment in gold ETFs and reduction in interest rates will also have a positive impact on gold prices. Gaglani says that increasing macroeconomic risks will strengthen gold.
Price may be Rs 1.5 lakh per 10 grams on Dhanteras next year
Gaglani said, “Printing too many notes by central banks, especially in America, will create a situation of hyperinflation, due to which the value of major currencies of the world will fall and the inclination of investors will increase towards bullion. If the purchase of gold by the central bank continues, then by Dhanteras next year, the price of gold will reach Rs 1,50,00 lakh per 10 grams.”