It has been a golden year for gold as it is headed for best annual performance since 2020. It is set for its third consecutive monthly gain and is up 15 per cent so far in 2023. Gold has touched all-time high levels of $2,151/Oz in international futures and touched record high levels past Rs 64,000/10 grams on MCX in early December.

Reasons for the rally:

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-Softer dollar index, weaker benchmark US treasury yields support price gains
-Geopolitical tensions amid Ukraine and Middle East wars prop up safe haven appeal
-Expectations of Federal Reserve rate cuts in first quarter of 2024 contributing to the appeal

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