Gold Price Correction: Is the Recent Gold Price Correction a Signal to Buy?

Gold Price Correction
Gold Price Correction

by Tanushree Jaiswal Last Updated: Jun 20, 2023 - 03:18 pm 414 Views

As global interest rates approach their peak levels, there is speculation that the US Federal Reserve may commence interest rate cuts by the end of the current calendar year. Such a decline in interest rates historically correlates with an upward trend in gold prices, as it reduces the opportunity cost of holding the precious metal.

Despite a minor correction, the outlook for gold prices remains positive, presenting a favorable entry opportunity for long-term allocation strategies.

In terms of allocation strategy, it is advisable to consider a normal range of 5-15 percent allocation to gold within investment portfolios. This implies that investors should maintain approximately 5-10 percent of their total portfolio value in gold.

Looking ahead, gold prices will be influenced by central bank actions, the US dollar index (DXY), the possibility of US recession, and geopolitical situations such as those between Russia-Ukraine and China-Taiwan.

Share Market Today


How do you rate this article?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Open Free Demat Account
Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Plaza Wires IPO Anchor Allocation at 28.06%

About the Plaza Wires IPO Plaza Wir

  • Sep 29, 2023
Master Components IPO Opens Flat, Closes Flat

Flat listing for Master Components IPO, closes flat too

  • Sep 29, 2023
Emami Acquires 26% Stake in Axiom Ayurveda, Enters Health Juice Segment

On 29-sep-2023, Emami Ltd., a prominent Indian FMCG company, made an exciting foray into the health juice category by acquiring a 26% stake in Axiom Ayurveda Pvt Ltd, the firm behind the popular AloFrut brand of beverages.

  • Sep 29, 2023