As we enter Samvat 2081, the outlook for gold prices in India by next Diwali appears promising. The attraction of gold as an investment during festive seasons such as Diwali runs deep in India. Being a sign of wealth and a store of value, it is a hot pick for many of the investors. With confidence boosted by sturdy central bank purchases and a possible reversal in global interest policies as Samvat 2081 kicks off, the jewel looks more appealing than ever. Also, demand due to geopolitical uncertainties often stabilizes the position of gold as an asset.
For investors looking to add more diversification to their portfolios or hedge against volatility, gold is a unique opportunity and hits the sweet spot of traditional versus strategic investment.
Strong Gold Projections
Experts predict a possible return of 15-18%, supported by positive economic indicators, strong safe-haven demand, and sustained central bank purchases. This growth projection from major financial firms like JM Financial Services and LKP Securities suggests that gold could continue its recent strong performance. In Samvat 2080, gold outpaced other assets like the Nifty, reinforcing its appeal.
Pranav Mer, Vice President of Commodity and Currency Research at JM Financial Services, highlights the ongoing demand from central banks and potential changes in global interest rates as key drivers supporting gold prices in India by next Diwali. Global geopolitical risks and likely interest rate cuts have led central banks worldwide to increase their gold reserves to secure stable assets, boosting gold’s value.
Silver’s Bright Fututre
Looking forward, Jatin Trivedi, Vice President at LKP Securities, anticipates at least a 10% rise in gold over the coming year, with the potential for a 15-18% gain if favorable import policies remain. Additionally, silver—another important metal—surged about 40% last year and is expected to benefit from increased demand for renewable energy, which heavily relies on silver in industrial applications.
With Diwali 2024 on the horizon, gold investors in India may find promising returns as global and local market conditions favor price growth. Known as a stable investment, gold may offer lucrative opportunities during the festive season, appealing to both seasoned and new investors looking to capitalize on positive trends in gold prices in India by next Diwali.
Also, Read: Blinkit gold coin scam: Customers ordered 1g gold coin, recieved 0.5 coin instead