The price of gold has risen by two percent this week. With this, it has surpassed the BSE Sensex in terms of returns this year and the Nifty has reached close to 50. Gold has given a return of 16 percent so far this year, while the Sensex has risen by 15 percent. The Nifty has risen 17 percent so far this year. The European Central Bank has cut interest rates by 25 bps. It is believed that the US Fed may also do the same next week. Due to this, gold reached an all-time high of $ 2,599 per troy ounce on Comex on Thursday.

Anuj Gupta, Head of Commodity and Currency, HDFC Securities, said that the ECB rate cut has led to a rise in the price of gold and silver. The gains can be even better if customs duty on gold and silver is removed as international spot prices of gold have risen by 25% so far in 2024. Finance Minister Nirmala Sitharaman had reduced customs duty on gold and silver to 6% in the budget presented on July 23. Gold prices fell by 6% on that day.

Prathamesh Mallya, DVP-Research, Non-Agri Commodities & Currencies at Angel One, called gold a portfolio diversifier for investors. He said it can be an alternative to equity in the near to medium term for low-risk investors. He said geopolitical issues and the US election are strong triggers to maintain gold's appeal.

It is believed that the positive trend in gold will continue before the Federal Reserve's policy meeting next week. According to Gupta, MCX Gold Futures can reach the level of Rs 75,000 very soon. At 2.30 pm, October delivery gold on MCX was trading at Rs 73213 with a gain of Rs 389.