Gold Fell 13%: Is Your Portfolio Hedge Still Working?

Gold had its sharpest quarterly fall in over a decade. Before you panic-sell your gold ETF or sovereign bonds, here's what this dip actually means for your long-term financial plan.

Here's what happened: Gold prices dropped roughly 13% in a single quarter — the steepest fall since 2013, reversing a long bull run.. Rising US dollar strength and improved global risk appetite pushed investors away from safe-haven assets like gold.. Despite the fall, gold still delivered strong returns over a 3-5 year horizon for Indian investors who held patiently..

What you should do: Check your gold allocation — if it's above 15-20% of your total portfolio, consider rebalancing rather than panic-selling.. Compare Sovereign Gold Bonds (SGBs) vs gold ETFs — SGBs offer 2.5% annual interest on top of price gains, making dips more bearable.. Avoid timing the gold market — instead, set a fixed monthly SIP into a gold ETF to average out your buying cost automatically..

SGBs bought at lower prices are doubly valuable — you lock in a higher effective yield (2.5% on face value) AND benefit when prices recover. Dips are a buying window, not an exit signal.