Gold has outshined Indian equities for the fourth year in a row on a Diwali-to-Diwali basis, outperforming in seven of the past eight years. MCX gold has surged 40% since last Diwali, versus a 5% rise in the Nifty 50, with 2024 returns at 32% against the Nifty’s 24%.

Analysts cite Fed rate cuts, central bank buying, and geopolitical risks as key drivers, with stretched equity valuations and weak earnings adding pressure on stocks. Experts say gold could extend its edge into 2025, while silver, supported by strong industrial demand, is also gaining investor favor.

Global houses remain bullish: Goldman Sachs sees prices near $5,000/oz, and Jefferies has lifted its long-term target to $6,600.