Gold rally brings big gains, but sparks calls for caution

Gold's glittering rally may have reached a short-term peak.

- Ram Sahgal [e-mail]

After surging more than 50% in the past year, the precious metal is drawing calls for caution from commodity analysts, who say individual investors should book some profits while prospective buyers wait for a pullback.

The run-up-fuelled by central bank purchases, strong retail demand, and tariffdriven geopolitical jitters under US President Donald Trump-has lifted gold to record highs, far outpacing equities and the rupee. But with signs of consolidation emerging, experts warn that the spectacular gains seen in the past year may be behind us. Gold has surged 54% to ₹115,510 per 10 gm in the past year through Monday evening, per Bloomberg, citing the active futures contract traded on commodity derivatives bourse MCX, a proxy for the spot price.