Synopsis:
Since final Diwali (October 31, 2024), gold per 10 grams considerably outperformed Nifty 50, rising 60.5% versus Nifty 50’s 6% achieve. Gold benefited from financial uncertainty, inflation, geopolitical tensions, low actual rates of interest, and home demand.
Final Diwali was celebrated on October 31, 2024, Nifty 50 opened at 24,349.85. As of as we speak, October 20, 2025, it opened at 25,824.60, reflecting a return of 6% since final Diwali.
MCX gold per 10 grams opened at Rs. 79,616 on October 31, 2024. Right this moment, it opened at Rs. 1,27,817, marking a 60.5% improve. Nifty 50 underperformed in comparison with gold over the previous 12 months on account of a mixture of financial, market, and investor sentiment elements.
Firstly, fairness markets confronted stress from international financial uncertainties, together with fears of slowing development, geopolitical tensions, and protracted inflation in key economies. Such elements typically weigh on company earnings and investor confidence, limiting the upside in inventory indices like Nifty 50.
Secondly, rising rates of interest in India and overseas made borrowing costlier for firms, affecting enlargement plans and profitability. Larger charges additionally shift investor choice towards fixed-income devices, lowering demand for equities.
For the reason that begin of this 12 months, the Reserve Financial institution of India decreased the repo charge from 6.5% to five.50% by way of a number of cuts between February and June 2025. These reductions, totaling 1 proportion level, have been geared toward stimulating financial development amid easing inflation and supporting general monetary stability.
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Causes behind surge of gold worth
The rise in gold costs over the previous 12 months will be attributed to a number of international and home elements. Financial uncertainty and inflationary pressures have pushed buyers towards gold as a safe-haven asset. With rising commodity costs and considerations over slowing financial development, many buyers choose gold to guard their wealth from forex depreciation and market volatility.
Central financial institution insurance policies and rate of interest actions have had a big affect. Decrease or secure actual rates of interest scale back the chance price of holding non-yielding belongings like gold, making it extra enticing. Moreover, international geopolitical tensions and monetary market uncertainties typically spur demand for gold, additional pushing up costs.
Home elements comparable to elevated demand from the Indian market, significantly throughout festivals and wedding ceremony seasons, together with fluctuations within the Indian rupee towards the US greenback, have contributed to the upward pattern. A weaker rupee makes gold imports costlier, which in flip raises native gold costs. These mixed elements have collectively supported the regular rise in gold costs since final 12 months.
Written by Manideep Appana
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