Gold has once again outshined Indian equities, delivering stronger Diwali-to-Diwali returns for the fourth consecutive year. Over the past eight years, gold has outperformed equities in seven, reinforcing its role as a reliable safe-haven asset. Analysts believe this trend may continue into the upcoming festive season. Since last Diwali, gold on MCX has surged nearly 40%, while the Nifty 50 managed only a 5% gain. In 2024, gold posted a 32% rise compared to the Nifty’s 24% increase, and in 2023, it climbed 21% versus the Nifty’s 10%. Experts attribute gold’s continued dominance to challenges facing Indian equities, including high valuations, tepid earnings growth, ongoing foreign investor outflows, and global trade tensions. The recent rally in gold has been supported by a softer US Federal Reserve policy stance, increased central bank purchases, and heightened geopolitical uncertainty, prompting investors to shift toward safer assets. Many market observers anticipate this bullish trend in gold may persist.
Gold Outshines Indian Equities For 4th Successive Year
