Quote on Gold by Mr. Pankaj Singh, smallcase manager, Founder & Principal Researcher - SmartWealth.ai.
Below the Quote on Gold by Mr. Pankaj Singh, smallcase manager, Founder & Principal Researcher - SmartWealth.ai.
“Gold’s sharp recovery reflects a combination of global macroeconomic and geopolitical factors. The nearly 3% rise in international gold prices on November 4 was supported by a weaker US dollar and declining Treasury yields, which have improved the appeal of the precious metal as a non-yielding asset. The outcome of the US midterm elections adds another layer of uncertainty, with potential constraints on the Trump administration’s legislative agenda influencing fiscal and economic policy expectations. At the same time, concerns around elevated US equity valuations, particularly in the technology and AI space, and the possibility of further market corrections are reinforcing gold’s role as a portfolio diversifier and safe-haven asset. This trend was also reflected in domestic markets, with December MCX gold futures gaining around 2.36% to Rs 1.42 lakh per 10 grams on November 4. Going ahead, however, the sustainability of this recovery will depend on US inflation trends, Federal Reserve policy decisions, employment data and rupee movements. Any shift towards tighter monetary policy, a stronger dollar or rising real yields could limit further upside, while a sustained recovery in equity markets may moderate safe-haven demand. Investors should therefore view gold as a diversification tool within a balanced portfolio rather than make investment decisions based solely on its recent price momentum.”
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