Share Market News / Why are gold and stock market running together, these are 5 big reasons

Recently, the bumper rise in the stock market and gold gave investors huge returns. Sensex-Nifty gave a return of more than 6% and gold gave a return of about 9%. The main reasons for this were America's tariff policy, fall in the dollar index and fear of global recession.

Share Market News: In the last few days, both the stock market and gold have given tremendous profits to investors. Usually it is rare to see both asset classes—one risky (stock market) and the other safe haven (gold)—running fast together. But the figures from the beginning of April 2025 till now are telling a different story.

📈 Stock Market: Sensex and Nifty gave strong returns

In just four trading days from April 9 to April 17, the Sensex has given a profit of about 6.37% and the Nifty 6.48%. The Sensex jumped from 73,847.15 to 78,553.20, while the Nifty closed at 23,851.65, up from 22,399.15.

Major jumps in Sensex:

11 April: +1,310 points

15 April: +1,577 points

17 April: +1,509 points

Big jump in Nifty:

11 April: +429 points

15 April: +500 points

17 April: +414 points

This jump in the stock market shows that investors' confidence remains intact and they are taking full advantage of positive global signals.

Gold: Shines as a safe investment option

Gold also did not lag behind amid the pace of the stock market. Gold has increased by about 9% in the seven trading sessions from April 8 to April 17. Gold increased from Rs 87,648 per 10 grams to Rs 95,239.

Major uptrend in gold:

  • April 09: +2,156 rupees
  • April 10: +2,229 rupees
  • April 11: +1,712 rupees
  • April 16: +2,210 rupees
Although there was a slight decline on April 14 and 17, investors have still got tremendous returns.

What is the reason for the simultaneous uptrend in both?

Trump tariff removal: The US removed tariffs from 75 countries, including India, which boosted trade. The stock market took it positively, but the increasing tariffs on China gave rise to uncertainty—resulting in increased demand for gold.

Decline in dollar index: The dollar has weakened, which strengthened the rupee and foreign investors' interest increased towards the Indian market. Also, the fall in the dollar makes gold cheaper, which also increases its demand.

India and global growth data: Even though the IMF and the World Bank are warning of a recession, India's economy is maintaining a fast pace. Strong macro data supported the stock market, while fears of a global recession supported gold prices.

Policy rate cut: The EU, the US and India have cut interest rates. Lower rates boost the stock market, while gold also gets support due to reduced competition from interest.

Positive market sentiments: Possible talks between the US and China, Japan's diplomatic initiative and strong investor sentiment supported both markets.

Golden opportunity for investors

The beginning of April 2025 has worked as a double bonus for investors. The rise in both the stock market and gold indicates that the market is currently in a positive mood, but it is important to be cautious. In such a period, the right balance of the portfolio and timely decision can give better benefits to the investors.