Gold Witnesses a 13% Surge in 2023; Breaking a Three-Year Dry Spell

Published on Jan 01, 2024 14:38

Gold finished 2023 at a robust $2,063 per ounce, marking its first annual gain in three years. The precious metal soared on the back of expectations that major central banks, including the US Federal Reserve, would initiate interest rate cuts early in the coming year. Following an aggressive rate-hiking cycle in 2022, the Fed`s shift is anticipated as signs of cooling inflation in the US emerge. The heightened geopolitical tensions in the Middle East, coupled with the spectre of a prolonged conflict in Gaza, further fueled safe-haven demand for gold, contributing to its impressive climb and reaching a new record high within the year. Domestic gold futures were seen trading near the all-time highs with the February contract seen trading up Rs 128 at Rs 63331 per 10 grams.