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Below the Perspective on  Gold Prices by Mr Nish Bhatt, Founder & CEO, Millwood Kane International

The bull run continues for the yellow metal, which attains fresh highs. Gold prices have risen over 28% in the international market, and over 19% in the domestic market whereas the gains for the Indian equity benchmark - Nifty have been nearly 19%. Gold has outperformed most asset classes in CY24.

Gold has scaled fresh highs with $2700/oz in sight in the international market, whereas the Rs 76,000 level has been attained in the domestic market. The rally in gold is due to a combination of factors, primarily it is on expectations of further rate cuts by the US Fed, this also implies the beginning of a rate-easing cycle after 4 years. Rates are expected to stay lower for longer from here on.

The expectation of lower rates has weakened the US dollar, which makes it more affordable. On the global front, geopolitical tensions in various pockets of the world have increased the appeal of the safe haven. Escalating tensions between Lebanon and Israel and higher buying by ETFs will keep the demand for gold higher in the short to medium term.

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