In the financial year FY23, a double digit increase in gold prices has been registered. Gold has proved to be one of the best options giving strong returns amidst tremendous volatility in the stock market. Nifty and Sensex gave massively negative returns in FY23, while gold prices rose up to 15 per cent due to higher economic risks. Now the financial year FY24 looks attractive for bullion. According to experts, gold prices may increase by 15 to 20 percent in the current financial year.
Last week on March 31, MCX gold futures are maturing for June 5. In the financial year FY23, the gold price had closed at Rs 59,600 per 10 grams with a slight decline of 295 or 0.49 per cent, but the futures had increased up to Rs 60,065. Due to the aggressive stance adopted by the US Federal Reserve and central banks of other countries regarding the interest rate, the purchase of gold has increased and the prices have increased.
According to experts, in the last financial year 2023, there has been a huge jump of Rs 8000 in the prices of gold in the domestic markets from 52000 to 60000. That is, gold has given a total return of 15 percent. Whereas, Nifty has given negative returns in FY23. Because the geo-political tension created due to the Russia-Ukraine war increased the inflation rate at the global level.