What is the status of US-India trade negotiations?

The US and India are continuing negotiations to address trade barriers between the two nations, with both leaders expressing optimism about reaching a common ground and finalizing a deal.

What advice are experts giving to investors?

Experts recommend that investors maintain a balanced portfolio with exposure to both equities and the yellow metal, gold. They advise short-term investors to increase their allocation to bullion, while long-term investors should maintain a well-diversified portfolio with a higher exposure to equity markets and a 10-15% weight to the bullion.

Home / Business and Economy / Central Banks Fuel Gold's Meteoric Rise Amid Global Uncertainty

Central Banks Fuel Gold's Meteoric Rise Amid Global Uncertainty

Q: How have gold prices been performing?

Gold prices on MCX have hit record high levels, driven by aggressive central bank buying, US Fed rate cuts, and heightened concerns over global economic growth due to Trump's tariff policies.

10 Sep

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Summary

US-India trade negotiations underway, potential deal in the works
Gold prices hit record highs, driven by central bank buying and economic concerns
Experts recommend diversifying portfolios with both equities and gold

Central Banks Fuel Gold's Meteoric Rise Amid Global Uncertainty

On September 10, 2025, the domestic market sentiment in India appears to have improved after US President Donald Trump signaled that trade negotiations between New Delhi and Washington are underway, and the two countries may soon reach a common ground to finalize a deal.

Earlier this week, Trump stated that India and the US "are continuing negotiations to address the trade barriers between the two nations." He also expressed his eagerness to speak with Prime Minister Narendra Modi in the coming weeks. PM Modi reciprocated with similar gestures, saying he looked forward to conversing with President Trump and working together to secure a brighter future for both countries.

These positive developments between the two nations have pushed Indian equity benchmarks, the Sensex and the Nifty 50, higher and dragged MCX Gold prices lower from their record high levels. However, considering past experiences, market participants believe it may be too early to discount a trade deal tilted in favor of India.

The current situation has created a dilemma for investors, who are now weighing whether to increase their exposure to equities or gold. Experts believe gold's stellar bull run this year can continue due to aggressive central bank buying, US Fed rate cuts, and heightened concerns over global economic growth due to Trump's tariff policies. While there may be intermittent profit-booking, they advise investors to increase their exposure to the yellow metal.

Diversification remains key, as both equities and gold have their merits. Investors with a short-term horizon are advised to increase their allocation to bullion, while long-term investors should maintain a well-diversified portfolio with a higher exposure to equity markets and a 10-15% weight to the bullion.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.