Hyderabad: Gold has outperformed the stock markets in 2024 so far, with rates in Hyderabad and other cities surging. The overall return on gold has surpassed that of the Sensex and Nifty 50.
Between January 1, 2024, and August 24, 2024, the 24-carat gold rate increased from Rs 63,870 to Rs 73,040. During the same period, the Sensex and Nifty 50 rose from Rs 72,271.94 to Rs 81,086.21 and from Rs 21,741.90 to Rs 24,823.15, respectively.
This translates to an overall return of 14.35 percent for gold, compared to 12.19 percent and 14.17 percent returns for the Sensex and Nifty 50, respectively, so far this year.
Why gold outperformed Sensex, Nifty 50
In the current economic climate, investors are gravitating toward gold due to fears of a financial crisis, prompting them to preserve significant wealth in the form of gold.
They are concerned about global issues such as disturbances in the Middle East and the ongoing Ukraine-Russia war.
The Reserve Bank of India (RBI) has continued its gold purchasing trend, albeit at a slower pace following a significant increase in June, when purchases reached 9.3 tonnes—the highest monthly total in nearly two years.
Year-to-date, the RBI’s gold acquisitions have totaled 44.3 tonnes, surpassing the total purchases of the past two years combined. The RBI’s gold reserves have now reached a record 849 tonnes, representing 8.8 percent of total foreign reserves, up from 7.5 percent a year ago.
Gold rates in Hyderabad, other cities may surge further
The demand for this safe haven asset has increased due to various factors, including global tensions and concerns that the U.S. economy may tip into a recession.
With high valuations in the stock markets and uncertainty in geopolitical issues, investors are seeking reliable and safe investments, and gold appears to be the right choice.
All these issues may lead to a further rise in the gold rates in Hyderabad, and other cities.
