Gold ₹24k Below Peak: Nifty-Gold Ratio at 1.50 – Buy or Sell?

MCX gold prices are currently trading around ₹1,56,750 per 10 gm, which is approximately ₹24,000 below its all-time high of ₹1,80,779. This significant correction from the peak has brought the Nifty-gold ratio to 1.50, indicating a potential re-evaluation of asset allocation by investors.

This matters for Indian traders as gold is a traditional safe-haven asset and a key component of household savings. The current price level and Nifty-gold ratio suggest a crossroads for investors, potentially leading to capital rotation between equities and gold, impacting overall market liquidity and sentiment.

Jewellery retailers like TITAN and PCJEWELLER could see mixed impacts; lower prices might stimulate demand but could also affect inventory valuations. Gold loan companies such as MUTHOOTFIN and MANAPPURAM FINANCE will be closely watching as gold prices directly influence their collateral value and loan book health.

Traders should monitor global macroeconomic indicators, central bank policies, and geopolitical events that typically influence gold prices. Domestically, watch for any shifts in investor sentiment towards safe-haven assets versus equity investments, and how this translates into demand for physical gold and gold-backed financial products.

• •MCX gold rate today is around ₹1,56,750 per 10 gm.
• •Gold is approximately ₹24,000 away from its record high of ₹1,80,779.
• •The Nifty-gold ratio has hit 1.50.