2024-07-04 15:04:55
New Delhi: The first half of the year is over. During this period, gold has performed much better than Nifty. Gold has given a return of 13.37% in the first half of the year while Nifty has gained 10.5% during this period. In terms of rupees, the MCX gold contract has increased by about Rs 8,400 per 10 grams during this period. On the other hand, the Sensex has increased by 2,279 points during this period. The July gold futures had reached an all-time high of Rs 74,777 and now it is hovering around Rs 71,800 crore. The price of gold saw a rise due to tensions in the Middle East, a rise in gold demand in China and expectations of a cut in Fed interest rates. If we look at the performance of gold and Nifty in the first half of the last five years, gold has given a much better return. Between 2019 and 2023, gold has given positive returns on four occasions, with the highest in 2020 (13.71%) and the lowest in 2022 (0.59%). In 2021, it has given a negative return of 3.63%. In contrast, Nifty has given positive returns on three occasions (2019, 2021 and 2023). During this period, it gave a return of more than 12% in the first half of 2021 which is the highest in the 5-year period between 2019 and 2023. In 2020, Nifty saw a decline of 15% due to the Covid 19 lockdown in March. Nifty declined by 9% in the first half of 2022.
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Talking about the performance of gold, Prithviraj Kothari, MD of Riddhisiddhi Bullion Ltd and National Head of IBJA, said that gold is consolidating around Rs 71,000-72,000 after hitting a record high with a gain of 18% between February and April. It has gained Rs 12,000 per 10 grams in the said period. Kothari has attributed the stability in prices to the lack of sufficient triggers. Gold may reach Rs 70,000 in the next 1-2 months due to weak fundamentals and technical reasons. The medium to long term outlook is still positive and the yellow metal may reach new record highs in the last quarter of 2024. Kothari said that buy on dips around Rs 70,000 for a target of Rs 75,000 to Rs 77,000 by the end of the year.