Gold's Shine Not Lost Amid Industrial Metal Rally

Gold's recent decline is not a sign of its long-term loss of shine. The precious metal is experiencing a short-term correction due to rising crude oil prices, a stronger dollar, and higher bond yields. However, major financial institutions view this pullback as a buying opportunity rather than a structural collapse.

The consolidation in gold is on account of profit-booking and high price corrections forcing investors to diversify their portfolios. Investors are shifting towards industrial metals like zinc, aluminium, and copper as gold consolidates. The rising infrastructure demand, clean energy transition, and global supply deficits are giving room for these metals.

Copper demand is picking due to the demand for electric vehicles, data centers, artificial intelligence, and construction, creating a long-term supply deficit. The global market faces severe mine underinvestment and depleting ore quality, making copper vital for electronic circuitry, EV motors, and power grids.