Gold prices slipped below $4,500 an ounce on Thursday, pulling back from a two‑month peak reached in early August. S. Federal Reserve. Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, cautions that the retreat is more likely a consolidation phase than a reversal of the long‑term bullish trend.
'Spot gold's retreat below $4,500 an ounce looks like consolidation rather than a reversal,' he said, noting that the metal has maintained a higher‑than‑average yield since the start of 2024. For Indian retail investors, the dip could signal a buying window, especially for those who prefer physical gold or gold‑linked ETFs. However, the price volatility tied to global risk sentiment means that investors should keep an eye on the Reserve Bank of India's policy stance and the performance of the Sensex and Nifty, which often move in tandem with commodity prices. Gold ETFs like HDFC Gold Fund or Nippon India Gold ETF have seen inflows as investors look for a hedge against inflation.
While the current pullback may not spell doom for gold, it underscores the importance of a diversified portfolio. Monitoring the trend in the coming weeks will help investors decide whether to lock in gains or wait for a further dip before adding to their bullion holdings. Additionally, the upcoming RBI policy meeting could influence the rupee's strength, which in turn affects the gold price in Indian rupees.