Gold outperformed most stock indices in 2023

While the gold price buckled under the weight of central banks’ consistent key interest rate increases combined with a strong US dollar early in 2023, the precious metal has seen significant gains since the recent bankruptcies of overseas and in Swiss banks. Gold has thus once again proven its role as a portfolio stabiliser, reconfirmed by data recently published by Reuters Eikon. Analysed in the Incrementum plc preview chartbook, it reveals various findings from the annual “In Gold We Trust” report.

Gold outperformed regional benchmark indices almost everywhere

The analysis compares the year-to-date performances of both gold and the major stock indices of the largest industrialised nations and emerging markets as of 20 March 2023. While indices such as the US S&P 500, the German DAX, the Japanese Nikkei 225 or the Chinese SCI 300 recorded gains, gold almost consistently performed significantly better. One exception was the DAX, which beat the precious metal with an increase of 8.6 per cent. Gold, in turn, had gained 7.6 per cent year-to-date. However, the DAX has suffered losses in recent days – on 27 March 2023, it was only 6.9 per cent up year-to-date.

Gold performed best in Australia, the US, Canada, Japan, and China

The precious metal only achieved a double-digit gain of 10 per cent year-to-date in Australia, where the benchmark index ASX 200 saw a loss of 1.2 per cent over the same period. However, gold also made an important contribution to the performance of investor portfolios in most economic regions. In Canada, its value increased 8.8 per cent, in Japan 8.7 per cent, in the US 7.8 per cent, and in China 7.5 per cent. As of the reporting date, there was no currency in which gold had not gained in value in 2023.