The domestic benchmark indices, Nifty 50 and Sensex, continued to gain on Friday, maintaining the positive momentum from Thursday when both indices reached new all-time highs, with the Sensex hitting 86,055.86 and the Nifty 50 reaching 26,310.45.
Following some profit-booking in the Indian stock market during Friday’s session, the Nifty 50 was at 26,239.45 and the Sensex was at 85,832.07. Both benchmark indices appear to have extended their winning streak for the third consecutive session in November. Over the last three-months, Nifty 50 has gained 3.2%.
According to experts, the recent upward movement in the market is supported by expected India-US trade deal negotiations, increasing optimism about the RBI, a potential US Fed rate cut, and inflows from foreign funds.
Regarding commodities, gold and silver have recorded increases for the fourth consecutive month. Over the past three months, MCX gold has appreciated by 24.23%, and it has gained 6.71% in the last month, while silver has surged by 38.80% in three months and 14.28% in one month.
As both equities and commodities experience growth, a question arises regarding the flow of funds. With a positive stock market, investors might consider shifting their investments from safe-haven assets to equities.
Nirpendra Yadav, Sr. Commodity Research Analyst at Bonanza said that recent analysis shows that in 2025, both equities and gold have rallied together. This co-movement breaks with the traditional inverse relationship many expect.
“Inflation concerns, fears of currency debasement, and general macro uncertainty have boosted demand for precious metals even as equities look strong. For silver specifically, strong industrial demand, supply tightness, and safe-haven demand have helped sustain price strength. Even if stocks and gold both go up together, gold (and silver) still provide diversification due to their low or unstable correlation with stocks, they can improve a portfolio’s risk- adjusted returns,” explained Yadav.
Will the rally in equity markets weigh on gold, silver prices?
Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund Foreign, said that equity markets can rally all they want — it doesn’t change the structural case for precious metals. In a world where money is created freely and currencies carry no hard-asset backing, you almost have to stay structurally bullish on gold and silver
“Prices will swing in the short term, sure, but as long as global monetary policy remains this loose and Bitcoin’s institutional acceptability keeps rising, gold isn’t losing relevance. I continue to see gold compounding at roughly 5–7% annually over the long run. Any dip is just an invitation to add more,” added Mohit Gulati.
Further, Rahul Kalantri, VP Commodities, Mehta Equities Ltd explained that a rally in equities normally put downward pressure on gold and silver — especially if it reflects economic optimism, strong currency, rising interest rates, or shifting investor preference toward higher-yield/risk assets.
Kalantri believes that looking at the global landscape where the trade war continues and optimism around a potential Fed rate cut persists, a sizeable correction in gold and silver appears unlikely. Rahul noted that continued buying by central banks and steady interest from retail investors through ETFs are providing strong underlying support for precious metal prices.
“We maintain a bullish stance and will stay on the buying side as long as gold holds above $3,850 and silver above $44. On MCX, gold is expected to find support near ₹1,22,000, while silver may take support around ₹1,51,000. Major resistance levels are placed at ₹1,28,150 for gold and ₹1,65,740 for silver,” said Rahul Kalantri.
Key reasons for equities and commodities to rise
Nirpendra Yadav, Senior Commodity Research Analyst at Bonanza, noted that during times of decreasing real interest rates or sluggish economic growth, gold and stocks can sometimes rise together. Conversely, a wider array of Indian-listed firms, including many beyond the Nifty 50, experienced strong growth in Q2 FY26, with overall earnings for the larger Nifty 500 group showing considerable increases.
Yadav pointed out that the equity market has recently experienced some buying activity, but Foreign Institutional Investors (FIIs) have not yet made aggressive purchases; consistent buying by FIIs could lead to a fresh influx of capital into the equity market.
Additionally, he emphasized that global tensions have not yet subsided, which is contributing to an increase in the prices of precious metals. Precious metals still have some potential for growth, and the Nifty 50 index has only just begun its upward trend; if the Nifty 50 maintains its position above 26,300, it will attract more buyers. Overall, the liquidity from precious metals is not anticipated to decrease, as gold prices have once again increased due to global uncertainties and a rise in purchases by central banks.
“Nifty 50 has been giving a return of 12% while the return of gold is 60% so far in 2025, a clearly visible impact of traditional negative correlation between bullion and equity. However, we continue to see a rise in uncertainty in geopolitics and a recent expectation of a pause in dovish monetary policy may give more strength to the traditional correlation between equity and bullion prices,” added Nirpendra Yadav.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.