2% on Tuesday, pulling back from a two‑month high of $2,125 an ounce that it reached after the United States released a hotter‑than‑expected consumer‑price index. The stronger inflation reading revived expectations of a prolonged high‑interest‑rate environment, prompting traders to book gains. The retreat was led by profit‑taking across major futures exchanges in New York and London, where the metal had rallied for three consecutive sessions.
15%. Gold‑linked instruments such as sovereign gold bonds and ETFs saw modest outflows, reflecting a cautious stance among retail investors who had been adding gold as an inflation hedge. Jewellery demand, a key driver of Indian gold consumption, remains robust, but price volatility tempers new purchases.
For the average salaried professional, the episode underscores the need to balance gold’s safe‑haven appeal against its price swings. Financial planners suggest limiting gold exposure to 5‑10% of a diversified portfolio, especially when equity markets are showing resilience. With the Reserve Bank of India monitoring global rate trends, any further uptick in US yields could keep gold under pressure, making a measured re‑allocation to equities or debt instruments prudent.