Gold in your portfolio: What to expect from the safe-haven asset in volatile times

Subscribe to enjoy similar stories. MUMBAI : Elevated inflation risks, volatility in global equity markets, and steady physical demand from India and China have together reinforced gold’s role as a portfolio stabilizer at a time when economic visibility remains poor. Gold has continued to attract investors for its safe-haven status amid currency weakness and geopolitical stress.

Gold exchange-traded funds (ETFs) have delivered over 70% returns in 2025 (as of 22 December 2025). Experts remain optimistic on gold, arguing that the broader macro environment continues to tilt in its favour. The foundations of a prolonged gold bull market remain intact, even if volatility and headline-driven swings persist, according to Chirag Mehta, chief investment officer at Quantum Mutual Fund.

A potential slowdown in the US economy, particularly visible through labour market data, could eventually push the US Federal Reserve towards easing monetary conditions. If that shift coincides with a renewed inflationary impulse, the resulting mix of lower real rates and policy uncertainty would create a highly supportive backdrop for gold to extend its gains, he said. “Gold is expected to do well for a sustained period.

There could be a healthy correction as and when there is normalcy, but we expect it to be a healthy correction before the next leg of the rally," said Manav Modi, analyst, precious metal research at Motilal Oswal Financial Services. However, in the near term, experts remain cautious about gold. “We expect the gold price to trade within a firm range while expecting consolidation and volatility in the short term due to Fed rate speculation, along with future guidance over US economic health, the release of US economic data and