Titan, Senco, PN Gadgil, MORE: Gold Stocks Falls 1-5% As Gold Prices Drop Up To Rs 30,000; Book Profits, Or...

Gold stocks In India: Major gems and jewellery stocks nosedived on Wednesday, April 22, in the range of 1% to 5% on BSE and NSE, as gold prices in India corrected sharply after hitting more than Rs 1,00,000 per 10 grams mark for the first time. 24K gold in 10 grams and 100 grams dropped by Rs 3,000 and Rs 30,000 on Monday. Stocks like Titan Company, Kalyan Jewellers, PC Jewellers, Senco Gold, PN Gadgil, and others are trending on an intense bearish note.

"Bullion fell by as much as 1.5% during US hours after earlier surging to a fresh record as risk appetite improved with equities bouncing back, bonds and the dollar stabilizing. The precious metal is also in the overbought territory, signalling the recent price ascent may be overdone," Nirmal Bang said in a note.

Due to a surge in gold prices, both GOLD ETFs and gold stocks saw a surge in demand. However, on April 23, gold stocks saw sharp selling as over-hyped demand for haven dulled. In simple words, gold was too expensive to buy, and a correction was on expected lines.

Gold Stocks In India:

Titan Company, which is backed by Tata Group and the largest gems and jewellery stock, tumbled by nearly 1% to hit an intraday low of Rs 3315.55 apiece. Meanwhile, Senco Gold dropped nearly 5% to hit an intraday low of Rs 376 apiece.

Further, Kalyan Jewellers' share price dipped by 1.2% to hit an intraday low of Rs 519.10 apiece, while PC Jewellers plunged by nearly 2.6% to hit an intraday low of Rs 13.35 apiece. Another smallcap, Thangamayil Jewellers declined by over 3.1% to hit an intraday low of Rs 2095 apiece.

Meanwhile, stocks like Sky Gold plummeted by nearly 5% with its lowest intraday price at Rs 332.45 apiece, followed by Vaibhav Global which saw a reduction of 1.3% in its price to an intraday low of Rs 219.05 apiece.

PN Gadgil Jewellers struggled to float in the green zone after hitting its intraday low of Rs 545.60 apiece, a marginal decline from its previous price of Rs 546.90 apiece. In the case of Rajesh Exports, the stock was down by 2% to the day's low of Rs 195.10 apiece. Lastly, Motisons Jewellers toppled by 3% to hit an intraday low of Rs 18.52 apiece.

Gold stocks picked up strongly as gold prices continued to hit back-to-back new all-time highs in April so far. YTD, gold prices are up by 28% to 30%.

Gold Prices In India:

On Wednesday, 100 grams of gold dropped by Rs 30,000 to Rs 9,83,500 in 24K, while 100 grams of gold in 22K and 18K nosedived by Rs 27,500 and Rs 22,500 to Rs 9,01,500 and Rs 7,37,600 respectively.

10 grams of gold price slipped by Rs 2,250 to Rs 73,760 in 18K, while the price plunged by Rs 3,000 to Rs 98,350 in 24K, and dropped by Rs 2,750 to Rs 90,150.

This will be biggest single-day decline in gold in 2025 so far.

The reason why gold was top bet among other assets was because investors bought bullion as concern that President Donald Trump could fire Federal Reserve Chair Jerome Powell triggered a flight from US stocks, bonds and the dollar. Adding Nirmal Bang highlighted that, safe havens such as the yen, the Swiss franc, and gold have rallied in recent sessions following Trump's repeated calls on the Fed to cut interest rates immediately, a move seen as a threat to the central bank's independence that drove the dollar to the lowest since 2023. "But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," Trump said on social media on Monday, referring to Powell.

Following this, gold surged about 29% this year, outperforming nearly every other major asset class, as investors flee equities exposed to an expanding trade war, the brokerage said.

Is it time to protect profits in gold?

Gold prices have been on a tear having risen 28.1% this year and trading atall time highs. It seems that there is no stopping this gravy train, Ventura said in its note. However, with the geopolitical and geo-economic factors at play, the analysts at Ventura believes it would be difficult to estimate where gold prices are headed.

Furthermore, Ventura highlighted that with the price inching just above the parallel channel and Fibonacci retracement of 2.618 (of the previous downswing) providing resistance and spinning top candlestick formation could suggest that there is a pause in the rally that initiated from INR 87,135. Rejection from the INR 1,00,000pyschological level is not to be ignored.

On a seasonal basis as well, gold prices are likely to see correction or consolidation during May-June period. Also, Akshay Tritiya on 30th April is expected to mark the peak in festive demand.

"With all tabloids carrying headlines of the gold bull market and the retailinvestors joining the bandwagon, sometimes it is better to hedge our bullish bets," Ventura's note predicted.

Highlighting further, if FED lowers rate in the coming policy, then this could lead to decline in dollar and appreciation in Indian rupees. To which, Ventura's analysts expects INR to breach 84.90 and not to forget the 200 MA line is headed to 84.3. Hence, negative for gold prices. Lastly, the analysts said, "Given all the above, we advocate buying puts at current levels to protect your long positions in case of a change in sentiment."