Gold Dips from Record High, But the Rally Isn’t Over Yet

After touching record highs, gold has slightly cooled off but continues to trade above the critical $3,200 mark. The recent dip comes amid a brief easing of global tensions, particularly around US tariffs. However, the underlying macro backdrop remains supportive of gold’s long-term momentum. This pullback is less a reversal and more a pause in the larger trend. Persistent global uncertainty—be it geopolitical shifts, trade tensions, or currency volatility—continues to drive safe-haven demand for gold. For Indian markets, the movement in gold prices has a ripple effect: Jewellery players like

, , and Senco Gold may face near-term pressure as higher prices could suppress discretionary buying, especially during the wedding season. On the flip side, gold loan NBFCs such as Muthoot Finance and Manappuram Finance stand to benefit from increased asset values, improving loan-to-value ratios and margins. For investors, this may be an opportunity to re-evaluate allocations to gold-related instruments, especially in light of ongoing central bank buying and expectations of prolonged global volatility. As always, while gold remains a hedge, timing and allocation are key. The market may fluctuate, but the long-term narrative for gold continues to gleam. Source: The Economic Times No Recommendations