Why is the gold forecast so uncertain and unpredictable at this time?
According to a report by Quantum AMC, the Gold outlook is extremely uncertain because of the rapidly changing financial environment.
The report said, the future outlook of gold is extremely uncertain and unpredictable due to the fast-changing economic environment and the push and pull of various macro-economic and geopolitical factors.
Buying gold at festivals, especially Dhanteras, is considered auspicious. Let us look at how gold has done since Diwali last year, as we approach Diwali and make gold purchase decisions.
The report said gold prices underwent significant volatility with a peak to trough ratio of about 1.2 since Diwali 2021.
According to the Diwali Gold Outlook report, which is authored by Chirag Mehta, CIO, Quantum AMC, and Ghazal Jain, Fund Manager, Quantum AMC...
1. Gold prices took off to near-record highs in March as a result of geopolitical tensions. However, they swiftly cooled off as the geopolitical premium waned.
2. Furthermore, the tightening cycle and withdrawal of liquidity by global central banks put additional downward pressure on prices.
3. Despite this, gold has given returns of roughly 7% since the beginning of Samvat 2078. When compared to bonds and equities, this is an excellent performance.
4. As per the Crisil Composite Bond fund index, the Nifty 50 Index returned around -4%, while bond returns were roughly flat.
5. Hence, gold has once again proven its worth and importance in the portfolio by safeguarding capital and acting as an effective diversifier, according to the Quantum AMC report.