Indian Markets Crash: Will Gold Continue To Fall? 3 Experts Weigh-In

One of the worst sell-offs in the Indian markets has been triggered fuelled by intensified US tariffs and investors have been dumping their assets due to increasing fears of a global recession.

On Monday morning, the Indian benchmark indices observed their worst session in the last 10 months.

While the Nifty 50 lost 3.24% to 22,161.1, the BSE Sensex fell 2.95% to 73,137.9 on Monday, which was the biggest single-day decline for both of the indices since June 4, 2024.

The total market value of all NSE-listed companies has declined by $280 billion in three sessions, since the US tariffs under Trump's administration were announced on April 2, 2025.

While the Indian markets are unable to quantify the uncertainty that has been unleashed by the tariff war, gold prices, which typically rise when markets crash, have been behaving unusually.

What Do Experts Say?

Republic Business spoke to three different experts and here is what they have to say:

Gold Will Not Go Lower: Kishore Subramanian

According to financial expert Kishore Subramanian, normally during uncertain times, money moves from risk to safety, which means that during uncertain times if markets crash then gold prices will go up. But there is a "unique correlation" in this situation wherein even "though the markets are choppy, gold is down."

Gold is correcting because of its non-stop rise in the 12 months, Subramanian said. "Ideally, gold should rise from here if uncertainty continues," he added.

"This is an indirect indicator that the stock market may not correct deep," he said, adding, "if risks were perceived by investors then flight of capital from equity to gold would be more drastic and quantum-wise significantly higher."

Therefore, neither the central banks nor retail investors are hoarding gold.

Less Supply-Side Anxieties: Sugandha Sachdeva

As per Sugandha Sachdeva, the Founder of SS WealthStreet, the recent gold rally has met with headwinds, as selling pressure has been emerging despite the current trade disruptions imposed by the US.

Trump's decision to exclude gold and silver from tariffs has reduced anxieties from the supply-side which has reflected in the rising Comex inventories in recent months, especially during higher tariffs due to imports.

Ripe Situation For Diverting Flows To Gold: Sandeep Vempati

Economist and Member of the Bharatiya Janata Party, Sandeep Vempati the situation is ripe enough to divert flows and investments towards gold as it is a safe-haven asset "due to its limited supply and steady demand from various sources including jewellery and central banks."

Gold has acted as a hedge during episodes of turmoil, be it 2008 or in the post COVID times.

"Even central banks could weigh purchasing more gold which would be a continuation of trend witnessed in last 3 years. As a result the gold prices should see a rally in the 6 months to 1 year term," he said.

Citing the World Gold Council, he said that the recent pullback in the prices of gold is due to possible liquidations to meet margin calls, but just like any other stock or commodity, there are bound to be intermittent pullbacks for Gold too, he added.

Also Read: Why Is Gold Falling When It Should Be Rising Due To Tariff Fears?