New Delhi: Gold prices are going North and reaching record highs in trading sessions almost every day. In 2023 and 2024, gold prices recorded a continuous surge. In 2023, the yellow metal gave a return of 13 per cent to the investors. Whereas in 2024, the gold investors enjoyed 27 per cent returns.
The gold prices have already increased over 10 per cent in 2025 so far. Lets see what is the main reason for gold’s record breaking rise. The yellow metal’s value has been increasing during periods of high inflation, geopolitical uncertainty and equity market downturns. Historically, gold has been considered the best option to protect against such risks.
Recently, the role of gold as a hedge against inflation has been questioned. The reason for the same has also been explained. Inflation in the US reached 9.1 per cent in June 2022, and when inflation started coming down, gold prices started rising.
How Gold and Sensex performed in last 20 years
The price of gold in India has reached $2,933 per ounce (USD) and Rs 86,810 per 10 grams. Today the price for one gram of 22 carat gold is Rs 7,882. The gold is now the talk of the tinsel town as the prices have breached the Rs 85,000 mark. It may be recalled that BSE Sensex also crossed the 85,000 mark for the first time on September 25, 2024.
On September 27, 2024, BSE Sensex reached a lifetime high of 85,978 before closing at 85,571. For the first time, the 30-share index crossed the level of 85,000 on 25 September 2024.
In 2005, the Sensex was at 8,000 while gold was around Rs 7,000 per 10 grams. Whereas, in 2025, both Gold and Sensex (September 29, 2024) crossed Rs 85,000 level.
Using the CAGR formula, both the assets i.e. Gold and Sensex have given annual returns of 12 percent to 13 percent in the last 20 years.
The absence of any difference in the returns of both the asset classes in the last two decades is quite an amazing coincidence. However, it may be noted that the international gold prices are expressed in US dollars and any strength in USD means weakness in the Indian Rupee.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
Gold prices have reached record highs in 2023, 2024, and 2025, exceeding $2,933 per ounce and ₹86,810 per 10 grams in India. This surge is attributed to factors like high inflation, geopolitical uncertainty, and equity market downturns, making gold a sought-after safe haven asset. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
