Fundamentals of gold remain strong, no panic selling amidst US tariff: WGC

ANI April 7, 2025 106 views

The World Gold Council sees no panic in recent gold market corrections despite price fluctuations. Global geopolitical tensions and central bank investments continue to support gold's strong fundamentals. Sachin Jain emphasizes looking at gold from a long-term perspective rather than short-term volatility. Investors are maintaining a cautious wait-and-watch approach in the current market environment.

"We believe that the fundamentals of gold are still very strong" - Sachin Jain, WGC India CEO
New Delhi, April 7: The fundamentals of gold as an asset class are "very strong" and they will continue to be "very strong" throughout the year, and the latest correction was on expected lines post the imposition of Trump's reciprocal tariffs, said Sachin Jain, Regional CEO India at World Gold Council (WGC).

Key Points

1

Gold prices remain resilient despite recent USD 200 per ounce correction

2

Central bank investments support market stability

3

Geopolitical tensions drive safe-haven demand

Investors seemed to have opted for a wait-and-watch approach as volatility grips the market.Over the past two to three sessions, gold prices globally have declined by USD 200 from their peak of USD 3,201 per ounce.

Asked whether the latest decline can be termed as panic selling, Sachin Jain said, "No".

"No, it's not panic selling. There's nothing of panic selling here right now. If panic selling would have happened, then this could have dropped like very high a percentage," he supplemented his argument.

"So the USD 100-200 drop isn't really reflective of a very dramatic thing. It was expected. It was actually being structured from a long period of time," Jain told ANI over the phone.

"And we believe that the fundamentals of gold are still very strong and they continue to be very strong through the year," he reiterated.

The latest rise in gold prices is attributed to strong demand, including from various central banks investing through ETFs. Persistent geopolitical tensions also boosted the yellow metal's appeal as a safe haven.

Gold is often considered a hedge against uncertainties. The returns gold has yielded in recent times have been phenomenal.

Publicly available data showed that gold prices rose at an unprecedented pace in 2025, soaring over 20 percent. Over the past year, they have risen about 40 percent.

"And the most important issue that we are facing right now as a world is the whole geopolitical tension...These are fundamental issues by which gold prices get impacted," Sachin Jain said. "And the central banks continued buying, which has been reflective of the 2024 price increase and also the last quarter (January- March 2025)."

Without giving a level where gold prices are headed, Jain noted that gold should be looked at from a long-term perspective.

"We think the fundamentals of gold are fairly strong," Jain concluded.

Reader Comments

P
Priya K.
Gold has always been my go-to investment during uncertain times. This article confirms my belief - the fundamentals are solid! 💛 The recent dip might actually be a good buying opportunity.
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Rahul S.
While I agree gold is strong, I wish the article had more concrete data about central bank purchases. How much exactly are they buying? The 20% rise is impressive but needs more context.
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Anjali M.
My grandmother always said "gold never loses its shine" and she was right! 😊 Been holding onto my gold investments since 2020 and they've outperformed all my other assets.
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Vikram P.
Interesting perspective. I was worried about the recent drop but this makes me feel better about holding my position. The geopolitical tensions angle makes complete sense.
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Sanjay D.
Gold ETFs have been my best performing investment this year. The article is spot on about taking a long-term view - day-to-day fluctuations don't matter when you're in it for years.
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Neha T.
I appreciate how the WGC representative explained the situation clearly. No panic, just facts. Makes me more confident about allocating more to gold in my portfolio.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Gold Prices World Gold Council Sachin Jain Investment Trump Tariffs Economic Trends
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