Gold's rally may have paused, but the world's biggest wealth manager still thinks a 10% allocation to bullion is 'not a bad move right now' | Markets Insider

But the rally has slowed down over the last month. Gold price closed at its lowest level in almost a week on Thursday at $1930.30. He added:"It could be a good hedge with interest rates where they are, with the dollar where it is and with the markets where they are."

A weaker dollar is usually supportive for gold prices. This is because it makes it cheaper for non-US investors to buy bullion, which is quoted in US dollars.

Unlike cash, gold prices do not offer any return. So when interest rates are low, it means investors have to sacrifice less to hold the precious metal. "I had not bought gold in over a decade until the end of last year. UBS said it [is beneficial] to have a small allocation to gold. I put in a 5% allocation at the end of last year," Day said. "It comes back to interest rates. One of the best explanations of why gold has surged the way it has through this year have been bond yields," Gill added.

GodGroundGoldGuns

Quite awaking share!

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

10 things you need to know before the opening bell | Markets InsiderSummary List Placement Welcome to 10 Things Before the Opening Bell. Sign up here to get this email in your inbox every morning. Here's what you ... 1. Polo necks serve as covid masks
Source: BusinessInsider - 🏆 729. / 51 Read more »

Mohamed El-Erian warns Wall Street can 'easily' decline by another 10% after US equities suffered their biggest drop since June | Markets InsiderSummary List Placement Economist Mohamed El-Erian warned on CNBC that the US stock market can 'easily' fall by another 10% if investor attitudes... Short seller for sure!! 😂 Or, it may just burn down, as we realize that we don't need you.
Source: BusinessInsider - 🏆 729. / 51 Read more »