Gold Surges 60% in a Year: Bullish for Gold Loan Cos, Mixed for

Gold prices in the Indian spot market have surged by approximately 60% since Akshaya Tritiya in April 2025, marking the ninth consecutive year of strong returns for the yellow metal.

This sustained rally underscores gold's appeal as a safe-haven asset and an inflation hedge, especially relevant in the current global economic and geopolitical climate. For Indian investors, gold remains a culturally significant and financially rewarding investment, influencing consumer spending and financial sector dynamics.

Gold loan companies like Muthoot Finance and Manappuram Finance are likely to benefit as the value of their collateral increases, potentially leading to higher loan book growth and improved asset quality. However, jewelry retailers such as Titan Company and PC Jeweller might face mixed impacts; while inventory value rises, very high prices could deter discretionary jewelry purchases, affecting sales volumes.

Traders should monitor global inflation trends, central bank policies, and geopolitical developments, as these are key drivers for gold prices. Also, observe consumer demand patterns for jewelry during festive seasons to gauge the impact of high prices.

• •Gold prices surged ~60% since last Akshaya Tritiya (April 2025).
• •Ninth consecutive year of strong returns for gold.
• •Yellow metal in Indian spot market.
• •Risk flag: Sharp correction in global gold prices
• •Risk flag: Stronger US dollar and rising real interest rates