News

Gold Price Today: After being one of the hottest trades in precious metals over the past two years, gold has seen a sharp reversal. Gold prices on the MCX have fallen by nearly ₹38,000 from record highs, prompting investors to weigh whether the decline offers a buying opportunity or signals the need for greater caution.

Investor sentiment toward the gold and silver prices reversed amid concerns over a firm US dollar and the nomination of "inflation hawk" Kevin Warsh by US President Donald Trump as the next Federal Reserve chairperson.

During Friday's session, gold prices on MCX tanked nearly ₹20,000 per 10 grams to ₹1,49,653. And on Sunday, the prices closed at ₹143,000, taking the fall to ₹37,779 or nearly 21% from record high levels.

The sharp pullback has renewed interest among retail investors, especially those who were sidelined during gold’s strong rally. Market veterans, including Ray Dalio, have consistently argued for a 5–15% allocation to gold as part of a balanced portfolio.

In December and once again in Davos last month, Dalio — billionaire investor and founder of hedge fund Bridgewater Associates — had stressed that most investors should have between 5% and 15% of their portfolio in gold or an alternative money.

The 76-year-old investor said that we can get into the pricing of gold or what it might and might not do, but I need to hold that amount because that amount is the right amount.

"Because when the other parts of the portfolio do very badly — because of certain things like stagflation or debt issues — then gold does very well," the billionaire investor opined.

Dalio has repeatedly raised red flags on the rising debt levels in the world, and against that backdrop, he prefers holding gold.

"There’s too much debt, and we’re producing it too much. I’m not just looking at it in the United States, I’m looking at it in the UK and in France and in China and in most countries — we’re producing too much debt. That means I don’t want that kind of money. So because I don’t want that kind of money, I have been preferring the holding of gold to that kind of money," Ray Dalio told Nikhil Kamath in a podcast last month.

Analysts on Dalal Street, too, believe that this is not a moment of panic and rather gold and silver are portfolio hedges. They see the recent crash in gold as a much-needed cooling off in prices after the hot run seen in a span of two years.

Precious metals tend to move in cycles, and chasing momentum — particularly after vertical moves — often leads to suboptimal entry points, said Harshal Dasani, Business Head at INVasset PMS.

Despite the volatility, the long-term outlook remains structurally bullish for the bullion, said analysts. Record central bank buying, silver’s persistent supply deficit, and geopolitical tensions provide a solid floor for the precious metals.

Gold, with its lower volatility, continues to play a portfolio stabiliser role, while silver remains a higher-beta asset that requires tighter position sizing, he said, advising to use the precious metals as strategic portfolio hedges rather than for short-term trading, said Dasani.

For investors, this isn’t a moment for panic, said Akshat Garg, Head of Research & Product of Choice Wealth. "Gold and silver are portfolio hedges, not trading bets. If your allocation is sensible, staying put makes sense. If anything, staggered buying during corrections works better than chasing rallies. Volatility hurts emotions, not long-term plans," he added.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.