Yellow metal looks ready to make way for stocks

With gold up 25% in early 2025, experts see limited upside as global risks ease

- Abhinaba Saha

MUMBAI: Indian investors appear to taking a U-turn from safe haven gold to riskier assets like equities, as green shoots of geopolitical stability begin to emerge across the globe.

With the precious metal already delivering returns as high as 25% in the first four months of 2025, experts believe there is limited room for significant upside, especially as global uncertainties begin to wane.

This likely explains why domestic gold exchange traded fund (ETF) redemptions reached a one-year high last month.

Moreover, gold has remained under pressure lately, with prices being very volatile in the last three to four weeks. Going forward, Kaynat Chainwala, associate vice-president of commodity research at Kotak Securities, anticipates a 7-8% correction in gold prices in the short term,