Stories
Why Mirae Asset remains bullish on gold despite a 24 percent correction
- •Gold prices have corrected 24.6 percent from their January 2026 peak, primarily driven by rising US Treasury yields rather than weakening fundamentals.
- •Mirae Asset believes levels below $4,200 per ounce offer a strong investment opportunity despite expected near-term volatility.
- •Central bank demand remains a vital structural driver, with annual purchases projected around 700 tonnes as institutions diversify reserves.
- •De-dollarisation trends and ongoing geopolitical risks reinforce gold's role as a safe-haven asset and preferred reserve.
- •India's upcoming festive and wedding season is expected to provide a strong near-term tailwind for physical consumption.
Key Questions Answered
The recent 24 percent correction in international gold prices was primarily driven by the sharp rise in US Treasury yields and expectations of further Federal Reserve tightening, rather than any weakening in gold's underlying fundamentals.
Mirae Asset remains constructive because gold's weakness reflects higher bond yields rather than a deterioration in fundamentals. Strong structural drivers like continuous central bank accumulation, de-dollarisation trends, elevated geopolitical risks, and robust physical demand support the medium- to long-term outlook.
Central banks are heavily accumulating gold to diversify their reserves, with global demand projected to remain around 700 tonnes. Recent reports show that 89 percent of central banks expect global gold reserves to increase, and 45 percent plan to expand their own holdings.
