"When the whole crowd is onto it, a correction could be coming," he said in an interaction with CNBC-TV18 during the Mahurat Trading Session on Tuesday, October 21.
Ramesh Damani offered a broader perspective, suggesting that over the long term, equities tend to outperform gold. "In dollar terms, gold returns about 3-4% a year, while equities return 9-10%."
Damani added that while gold may appeal to traders or speculators, for investors, the next 5-10 years in equities are likely to be more rewarding.
Gold, he said, is mainly suitable for those who are fearful of market volatility.
Gold prices slipped from recent record highs amid optimism over easing global trade tensions and hopes that the US government shutdown may soon end.
Bullion fell as much as 0.8%, after surging to a peak of $4,381.52 an ounce on Monday.
Technical indicators, including the relative strength index, suggest the rally that began in August may have run its course. A stronger US dollar this week also made precious metals more expensive for many buyers.
Investors are closely watching US-China trade developments. US President Donald Trump expressed hope for a "really great trade deal" with Beijing as talks resume next week, but reiterated the possibility of tariff hikes on Chinese goods if no deal is reached by November 1.
Meanwhile, National Economic Council Director Kevin Hassett suggested the government shutdown could end this week.
Precious metals have had a strong run in 2025, with gold logging a ninth consecutive week of gains. Prices are up 65% so far this year, driven by central-bank purchases, inflows to exchange-traded funds, and robust demand for havens amid geopolitical tensions, rising government debt, and concerns over the Federal Reserve's independence.
With agency inputs
