The Invisible Floor Under Gold Prices

Over the last 24 months Gold (in INR) hasn’t fallen more than 3% on monthly close drawdown basis.

So, what’s holding gold steady?

The ‘Gold Put’ is at play.

What is Gold Put: Gold Put is the consistent, less price sensitive, Gold hoarding by central banks of various countries as an alternative to US Treasuries.

Why Central Banks Are Hoarding Gold

• Diversification away from US Treasuries – sanctions risk and the “weaponization” of the dollar have made gold a neutral reserve asset.
• Currency stability – gold reduces reliance on the USD, especially for emerging economies.
• Crisis hedge – in an era of high debt and geopolitical tension, gold provides long-term insurance.