The glow of gold and silver has suddenly increased. The major reason for this is the ongoing fight between Israel and Iran. Gold is now moving towards all time of its $ 3,500 an ounce. On 16 June, gold prices showed rise in the country and abroad. However, the Gold Futures came under pressure in the afternoon due to profits in the Commodity Exchange MCX in India. Experts say that increasing geopolitical tension has affected many assets.
Gold may continue to rise
Harshad Chetanwala, co-founder of Maywentagoth.com, said, “Gold prices rise in indefinite times especially in war. The impact of Iran-Israel battle is also visible on crude oil prices. Gold prices can go up further.” It is believed that the second reason for increasing the glow of gold is also an estimate of reduction in interest rates in America. Reduction in interest rate has a positive effect on gold. Here, central banks are increasing investment in Gold in China and India.
Central banks are increasing investment in gold
Goltellar co-founder Vivek Banka said that Gold has now become the second largest reserve asset in the world. It has left the euro behind. Retail investors are also shopping in gold along with central banks. However, experts say that gold prices have risen much. Some analysts believe that gold prices may fall further. The question is, what kind of strategy should investors should adopt in gold?
How much to invest in gold
Financial Advisors say that gold can be invested up to 10-15 percent in gold. Chetanwala said that investors should always take care of this level. In the last 2-3 years, there has been a rise in gold prices. So if an investors want to invest in gold for a long period, then they should wait a bit instead of investing at the current prices.
No opinion of profit booking in gold
Experts say that people who have invested in gold should maintain their investment. The reason for this is that gold is best for hedging. If the portfolio of investors does not have gold or less, it can slowly invest in gold. Experts say that equity and real estate have more share in the investment portfolio of most people in India.
Do not pay attention to short term ups and downs
Money Mantra founder Viral Bhatt said that those investors who want to increase investment in gold can invest in Gold Mutual Fund or Gold ETF. However, retail investors do not need to run after the fluctuations in gold prices in the short term. If you are investing in gold just because it is made in the news, then you may be disappointed. He said that if geopolitical tension decreases or the Federal Reserve is delayed in reducing the interest rate, then prices can be softened.