As fears of recession continue to loom the world economy and it surfaced again with the US yield touching a new low, gold is expected to gain appeal again as a safe-haven. Experts the price of the yellow metal to scale to Rs. 38,000 per 10 gm in a year's time. On Monday, the etal closed at Rs. 32,700 per 10 gm.
For three continues weeks, gold is ending in the green owing to the decline in the dollar and investment demand due to uncertainty in Brexit and a higher likelihood of recession hitting the global growth.
Dollar and gold price share inverse relationship and when dollar weakens, investor look at other avenues to make gains.
And as now experts see increase in the price of gold by a bountiful amount, recommend having 5-10% position in gold of their overall financial portfolio.