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Did you know that just when analyst thought gold prices prices were cooling off, this yellow metal a.k.a., Gold, surprised everyone with prices reaching $3,450 per troy ounce, up by 1.48%?
However, the big question remains, "Is it time to take some profits or stay invested?"
Well, experts say that entering gold purely could backfire, as prices may revert if tensions ease or the Fed delays cuts.
In this post, you will find the full coverage of the gold prices along with the experts' take on what is the right thing to do now.
What is Driving the Gold Surge?
Gold and silver have been on the rise as investors seek safe-haven assets amid global uncertainty. On Friday, gold futures settled at $3,452.80 per troy ounce, up 1.48%, while silver also saw a small gain. In India, gold hit Rs 1,00,276 per 10 grams, marking a 1.91% rise.
Geopolitical tensions and a weaker dollar are pushing investors toward precious metals, making gold an attractive option. Additionally, the US Federal Reserve's potential interest rate cuts are adding fuel to the rally, as lower rates make non-yielding assets like gold more appealing.
Should You Take Profits?
Many investors are wondering if it's time to cash out. Experts suggest keeping gold in your portfolio, but with caution. “Gold should make up around 10-15% of your overall portfolio. If you are already invested, it’s okay to stay in for now, but avoid lump-sum investments at these high prices,” says Harshad Chetanwala, co-founder of MyWealthGrowth.com.
If you're new to gold, consider adding exposure gradually, such as through gold ETFs or mutual funds, instead of going all in at once. Timing the market can be tricky, so a steady, long-term approach is often best.
What is Next for Gold?
As long as global tensions and uncertainty remain, gold is likely to stay strong. Experts recommend keeping a diversified portfolio and adding to your gold holdings gradually if you’re underweight in gold.
But remember, don’t chase short-term spikes in price, stay focused on your long-term investment goals.
In short, gold could continue its rise, but it's important to manage your investments wisely and avoid making hasty decisions based on short-term news.
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