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By Malvika Gurung
Investing.com — With the financial year 2022-23 coming to an end, benchmark indices and have broadly given flat to negative returns with escalating geopolitical tension in Ukraine and Russia raising inflationary pressures globally.
On the contrary, showcased a double-digit growth in FY23 and came out as one of the best-performing asset classes in the financial year.
Going ahead, the yellow metal is widely expected to give double-digit returns in the new financial year 2023-24, and experts suggest investors continue holding on to the commodity compared to risky assets amid the global situation.
In FY23, the prices of gold jumped by 15% beating all other asset classes, and rallied by a massive Rs 8,000 in Indian markets from Rs 52,000 to Rs 60,000, said Jateen Trivedi, VP Research analyst at LKP Securities in a note sent to Investing.com.
“Gold has been proven a perfect hedge in the Portfolio giving out strong returns,” he said.
In terms of return on investment, gold continues to look lucrative from a safety perspective at a time when inflation remains high globally and the interest cycle is yet to ease.
These factors will provide a further push for the yellow metal and are expected to give returns of another 10-15% in FY24.
“The prices can easily touch 66000-68000 on base case performance before we reach the FY24 end next year. On the back of weak and uncertain performance in risky assets it is strongly advised to remain invested in Gold for further 10-15% returns on the base case and 15-20% on bull case scenario,” Trivedi added.
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