Padmanabhan, anticipates a pullback in prices, driven by market fluctuations and geopolitical uncertainties. “My anticipation is there will be a correction in the coming days. But unfortunately, the US President—every day there is a statement, and markets are reacting to it. All this is not that good for the markets, but prices will fluctuate, and it will correct sometime,” he said.
He further noted that gold could retreat to around $2,700 before making another move higher. “Even before it reaches $3,400 or $3,800, I am sure it has to come to $2,700, then only it can take off. Consumers have to come forward and buy at the corrections. They cannot wait for a very big correction,” he added.
One of the key factors supporting gold’s long-term uptrend is rising institutional demand, especially from China.
Sachin Jain, MD of World Gold Council suggest that if Chinese pension funds allocate even 1% of their portfolios to gold, it could drive purchases of 600-700 tonne, providing a strong floor for prices.
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Uncertainty in global markets continues to drive investors toward gold as a safe haven. Recent tensions involving the US, Iran, and Russia have kept demand strong. Traders are also watching US economic policies, particularly regarding tariffs, which could influence market sentiment.
Even at elevated prices, Indian consumers continue to buy gold, especially during festive periods. Recent events like Akshaya Tritiya and Eid saw strong footfalls in jewellery stores. Retailers note that while price volatility affects short-term sentiment, long-term demand remains intact.
Dileep Narayanan of Malabar Gold highlighted the strong growth of gold ETFs and the increasing demand for investment bars. He noted that purchasing activity is influenced by price levels, with buyers waiting for dips to make their investments.
Additionally, he pointed out that the upcoming marriage season, particularly in South India, is expected to drive further gold purchases, as retail buyers continue to invest at various price points.
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(Edited by : Poonam Behura)