The gold prices have become weak in the second half of 2020 due to the extraordinary run through 2018 to 2019.
The gold prices have declined in the last six months up to 6.4 percent. But even though the yellow metal is incurring weak prices still, the experts believe it would be beneficial to invest in this precious metal.
They believe that gold should be an important part in any investor’s portfolio. Many experts have given a lot of reasons to not to avoid gold.
The economic situation has turned to be highly unpredictable these days because of the global pandemic.
The governments all across the globe are running in losses and the economy is expected to take even more time to get a proper recovery.
In wake of increased stimulus expectations, including the topmost economy US, the gold prices are likely to thrust upwards.
Also, it is important to mark that too much easy money is a key to inflation. High fiscal deficit and inflation are favorable for gold prices.
The yellow metal safeguards the purchasing power of an investor with fixed income, amid inflation and lower interest rates.
Also, in the light of the geo-political risks, gold can be a big beneficiary at times of crisis, according to experts.
Apart from that, one should must know a fact that gold has a negative correlation with equities. Hence, investing in gold can help to contain the downside of the entire portfolio.
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