Gold Enters Extended Consolidation Phase, Yes Securities Warns Investors Against Indiscriminate Accumulation

Hitesh Jain of Yes Securities states that gold is shifting from a secular bull market into a prolonged, cautious consolidation phase spanning the next three to five years. During this period, the precious metal has the potential to underperform both equities and industrial commodities. This transition means the traditional safe-haven appeal of the asset is losing some of its momentum, requiring investors to reevaluate continuous accumulation strategies.

While past years rewarded steady buying, the upcoming multi-year phase demands selective positioning rather than broad-based purchasing across portfolios. Investors and wealth managers should review asset allocation models to account for this potential underperformance relative to stocks and industrial metals. Monitor upcoming commodity cycle shifts and equity performance metrics closely to guide client portfolios.

The bottom line is that indiscriminate gold buying should be paused in favor of a more cautious, diversified approach.