Allocation to gold amid uncertainty
The rising US dollar and rising bond yields are dampening demand for non-yielding bullion, which, unlike other asset classes, does not appreciate on its own.
Gold, which has an inverse relationship with stocks, protects investors during times of market volatility. This makes gold an excellent portfolio diversifier during moments of high inflation, geopolitical, or financial turmoil.
Gold’s lustre has faded in recent months, as its prices have continued to fall for two months amid economic uncertainties.
Investors are looking at how they should deploy funds in gold and which form of the bullion would be the best method for them after the yellow metal’s ongoing underperformance.
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