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Gold gains 30% in 2024, silver up 35% on COMEX this FY: MOFSL

  • by Psu Connect
  • Date: 24-12-24

Central banks worldwide, including those in emerging markets, have been net buyers of gold for over a decade.

Gold gains 30% in 2024, silver up 35% on COMEX this FY: MOFSL
Gold gains 30% in 2024, silver up 35% on COMEX this FY: MOFSL

Gold and silver have experienced an impressive rally in 2024, gaining approximately 30% and 35%, respectively, on the Commodity Exchange (COMEX), a report revealed on Monday. While central bank policies and geopolitical risks are significant drivers of gold and silver prices, other factors also play a role in shaping the market, according to the report by Motilal Oswal Financial Services Ltd (MOFSL). In 2024, global demand for precious metals increased substantially.

Central banks worldwide, including those in emerging markets, have been net buyers of gold for over a decade. In 2024, the report stated that they collectively purchased more than 500 tonnes of gold, reflecting a strategy to diversify reserves amid economic uncertainties.

“The outlook for gold and silver remains positive, although some market consolidation or short-term dips may present buying opportunities. A loose monetary policy environment, coupled with ongoing geopolitical risks, should continue to provide a favorable backdrop for gold and silver,” said Manav Modi, Analyst, Commodity Research, MOFSL.

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“In India, domestic demand has surged, with assets under management in gold and silver ETFs surpassing Rs 30,000 crore and Rs 7,500 crore, respectively. Additionally, the reduction of import duties on gold and silver by the Indian government has spurred demand, especially during festive and wedding seasons, further driving up prices,” the report mentioned.

“The role of central bank actions and geopolitical risks in driving gold and silver prices has been a key factor, considering the broader economic environment,” the report noted. The US Fed’s announcement of a 50 bps rate cut indicates a proactive approach to stimulate the economy amid easing inflation and concerns regarding the labor market, the report stated.

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