Gold May Continue To Shine In 2017

In these days of uncertainties in the equity markets, a section of investors have been searching for alternate investment options and what can be better than the precious yellow metal. How is gold expected to perform in 2017--Karan Bhojwani and Yogesh Supekar bring this gold forecast for you and with reasons.

Year 2016 has been a tough year for investors across the asset classes, including bullion. Equity markets may have been the bête noire for a few who had pegged lot of growth expectation to the Indian corporate earnings. As was expected, investing in Sensex did not prove profitable in 2016.

Gold, however, retained its lustre till the very end of the year until demonetisation and the uncertainty created by such an aggressive economic policy decision started affecting the bullion price. Gold was up by 21 per cent from January 1 to November 8 from ₹24.980 to ₹30,330 per 10g. However, it lost almost 10 per cent in value over the past 45 days. A look at gold funds suggest average return of 8.87 per cent on a YTD basis. The positive returns for gold as an asset class is seen after almost three calendar years. The global uncertainty and heightened volatility has led to an increased demand for gold. Brexit was certainly one of the events that triggered uncertainty in global financial markets.