Most of the gold loan companies will actually earn their alpha if the price of gold starts going up. Obviously, the gold loan company does not increase your loan limit proportionately with the rising price of gold. However, higher price of gold enables these gold loan companies to get higher funding from the refinancing banks, ensuring a better spread and margin for them. Most of the gold loan customers being dispersed and uneducated do not have the bargaining power for demanding better funding terms and hence in a rising gold price scenario, the situation really works in the favour of these gold loan companies. However, what you can do is to sit down with your banker and either negotiates with them to reduce the gold hypothecated or to increase the limit. More of than not, the financer will be more than willing to oblige you.