Earlier this month, gold surpassed US$2,000 per ounce, driven by continued concerns about the war in Ukraine and possible consequences for the global economy.

Earlier this month, gold surpassed US$2,000 per ounce, driven by continued concerns about the war in Ukraine and possible consequences for the global economy.

Gold’s unique characteristics as a scarce, highly liquid, and uncorrelated asset show that it can be used as a long-term diversifier. Gold’s position as an investment and a luxury good has allowed it to generate average returns of 11% over the last 50 years

Gold completed the year at around 4% lower from the 2020, and may face similar dynamics in 2022, as competing forces support its performance.

Based on the LBMA Gold rose 2% in November. Gold’s performance was influenced by weaker equities, lower rates and strength of the US dollar.

The factors that influence gold demand in India are numerous and diverse. Cultural affinities, long-standing traditions, and festive gifts all play a part.