The strong rally in gold over the past 10 months appears to be losing steam, with MCX gold prices dropping more than ₹13,000 from record highs to slip below ₹1,20,000 per 10 grams on Tuesday. Growing optimism around a potential US–China trade deal and profit booking at higher levels have weakened demand for the yellow metal.
According to Ross Maxwell, Global Strategy Lead at VT Markets, rising bond yields and easing geopolitical tensions have reduced gold’s short-term appeal, leading to some correction. Investors are now awaiting the US Federal Reserve’s policy decision, where a 25-basis-point rate cut is widely expected — a move that could support non-yielding assets like gold.
Analysts remain positive about gold’s long-term prospects, citing its ability to preserve wealth during market volatility and hedge against inflation. Maxwell and Motilal Oswal’s Manav Modi believe that a dovish Fed stance could revive buying interest. Experts suggest a “buy on dips” approach but advise waiting for price stability before re-entering, as gold continues to play a key role in portfolio diversification and wealth protection.
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