📈 Indian Markets Rally While Gold Hits Record Highs: Global Moves, ETF Trends, and China’s Push Explained
Indian equity markets have rallied strongly over the past few sessions. The Nifty is up nearly 5.88%, and the Sensex has gained 5.84%, delivering solid returns for short-term traders and long-term investors alike. However, this rally comes alongside a significant surge in gold prices, with analysts and market participants watching both asset classes closely.
In an unusual market setup, equities and gold are rising in tandem—a dual trend often associated with economic uncertainty or global hedging strategies.
🪙 Why Gold Is on Fire Globally
The rising price of gold isn’t just a local story—it’s a global shift, with China leading the charge.
- Chinese banks are aggressively buying gold, and China’s foreign reserves now hold gold at a valuation close to 70, reflecting a consistent accumulation pattern.
- Notably, China’s gold-backed ETFs are also seeing record inflows, pointing to growing interest among institutional and retail investors alike.
- The electric vehicle (EV) revolution has only furthered China’s appetite for minerals, as it holds vast reserves of rare earth metals and aims to dominate that supply chain.
🪙 India’s Response: Silver, Trade Talks & Diversification
India, too, is making strategic moves:
- The government is showing increased interest in silver, exploring metal-based trade balances as part of its ongoing FTA discussions with the U.S.
- As per recent reports, India imported $74 billion worth of gold between April 2024 and February 2025.
- Switzerland remains India’s top gold source, supplying over 41%, followed by UAE (13%), South Africa (10%), and a surprisingly low contribution from the U.S., despite its gold reserves.
The Reserve Bank of India (RBI) is also steadily increasing its gold reserves, highlighting the government’s long-term faith in gold as a financial hedge.
📊 Is It Time to Invest in Gold?
Gold is no longer just for weddings and savings—it’s a multi-format investment avenue now:
- Physical Gold – Jewelry, coins, and bars (Remember to always take a proper bill for tax and resale purposes.)
- Digital Gold – Purchased online through apps or fintech platforms.
- Gold ETFs (Exchange Traded Funds) – Invest via Demat accounts, similar to stocks, offering liquidity and easy entry/exit.
Gold ETFs are gaining popularity, especially among working professionals and retail investors who want exposure to gold prices without the hassle of storing physical gold. ETF investments are managed by fund houses and charge nominal management fees, making them more cost-effective over time.
⚖️ Difference Between Mutual Funds and ETFs:
- Mutual Funds: No Demat account required. Fund managers can diversify investments.
- ETFs: Require a Demat account. Investment strictly follows the underlying asset (like gold, silver).
You can explore gold-focused ETFs through platforms like Angel One, where you’ll find gold, equity, debt, and global fund variants available.
💼 Stock or Gold? Or Both?
With the 90-day global tariff relief window open, markets are expected to remain upbeat. Analysts are optimistic about India’s potential to attract more FDI as it positions itself as a supply chain alternative to China.
Investors, meanwhile, face an important question: diversify into stocks, gold, or both?
If forecasts hold true, gold may reach ₹1,33,000 per 10 grams within the next 6–12 months. That’s a significant gain for a traditionally stable asset class. At the same time, stocks are seeing strong momentum, especially in pharma, auto, financials, and metals.
🔚 Final Thought: Balance is Key
You don’t know what lies ahead—geopolitics can shift, tariffs can return, and markets can react quickly. What you can do is prepare:
- Diversify across stocks and gold.
- Consider ETFs for ease and liquidity.
- Stay updated with global cues—especially from China and the U.S.
As goldsmiths and market veterans alike point out, this may be the start of a long-term rally in gold. Make your investment choices wisely and keep an eye on where the smart money is going.