India–US Trade Deal: Should You Buy Gold Now or Lean Towards Equities? PL Capital Experts Answer
- 11th September 2025
- 10:30:00 AM
- 3 min read
Summary
2025 is shaping up as a defining year for investors. Gold has soared over 40%, equities are regaining momentum, and India–US trade talks are fuelling optimism. The big question: should you chase the yellow metal’s rally or double down on stocks?
Mumbai | September 11 – Investors have been caught in a dilemma this week: should they buy more gold or increase exposure to equities?
The question comes at a time when global headlines are dominated by news of an India–US trade deal. President Donald Trump confirmed that negotiations with New Delhi are moving forward, and Prime Minister Narendra Modi also expressed optimism about a breakthrough. Markets quickly responded — Indian equity benchmarks climbed, while MCX gold prices slipped from record highs.
This shift has forced investors to rethink portfolio strategy.
Gold’s Big Run in 2025 — and Equities Regaining Momentum
Gold has had a blockbuster year, with domestic prices up more than 40% in 2025. The surge has been driven by heavy central bank buying, strong inflows into exchange-traded funds (ETFs), expectations of multiple US Federal Reserve rate cuts, and persistent geopolitical tensions linked to tariffs. These factors have made gold the safe-haven of choice, though fresh allocations at record levels now carry the risk of volatility.
At the same time, Indian equities have proven resilient. The Nifty 50 is up over 5% this year, supported by domestic reforms, policy stability, and steady earnings growth. The prospect of a trade deal with the US has further boosted sentiment, with markets betting on stronger exports and reduced tariff uncertainty. For investors with longer horizons, the return of risk appetite has firmly shifted attention back to equities.
PL Capital Experts: Own Gold, But Tilt Towards Equities
According to PL Capital, the answer is not gold or equities — it is gold and equities, but with a clear tilt.
Vikram Kasat, Head of Advisory at PL Capital, believes this is the right time to build stock portfolios. “Equities remain the stronger long-term bet. India’s fundamentals are solid, and improving trade relations only add to the case for equities. Gold is important as a hedge, but portfolios should now be tilted towards stocks,” Kasat said.
Sandip Raichura, CEO – Retail Broking & Distribution and Director at PL Capital, also advises a balanced approach. “Every investor should keep some allocation to gold, but the wealth creation story is clearly with equities. India’s structural growth and demographics make stocks the engine of long-term returns,” Raichura explained.
Both experts agree: gold protects, equities grow.
Why Balance Still Matters
History shows that gold shines during uncertainty, but equities outperform over time. A well-diversified portfolio should include 10–15% allocation to gold for stability and a much larger exposure to equities for growth.
For retail investors, the lesson is simple: don’t chase gold rallies at the cost of missing long-term equity compounding.
The Bottom Line
The India–US trade deal talks have boosted sentiment and reshaped portfolio debates. Gold remains valuable as a safety net, but with Indian markets resilient and optimism returning, equities are the stronger bet for 2025 and beyond.
As PL Capital’s experts underline: hold some gold, but lean into equities if you want to capture India’s long-term growth story.
Also Read: Smarter Money Choices with PL Capital
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
