Gold's Resilience: A Strong Asset Amid Market Volatility

Gold remains a robust asset despite recent market volatility. The latest dip was anticipated due to geopolitical tensions and tariff changes. Sachin Jain of WGC asserts the fundamentals are solid, supported by central bank investments. Gold's appeal as a safe haven persists, yielding exceptional returns.

The fundamentals of gold as an asset class remain exceptionally strong, with recent fluctuations anticipated in the wake of reciprocal tariffs imposed by the Trump administration. Sachin Jain, Regional CEO India at the World Gold Council (WGC), stated that gold's appeal endures amid market volatility as investors adopt a cautious stance.

Jain dismissed concerns of panic selling, explaining that the recent USD 200 decline from gold's peak of USD 3,201 per ounce signifies predictable market adjustments rather than dramatic changes. He emphasized that these changes were expected and well-structured over a long period.

Gold's steady demand, driven by central banks investing through Exchange-Traded Funds (ETFs) and geopolitical tensions, reinforces its status as a preferred safe haven. Over recent years, gold's value has surged, reflecting a robust response to global uncertainties. Jain maintains a long-term perspective on gold's strong fundamentals.

(With inputs from agencies.)