Yes, will say most investment experts to make the avenue work in your favour as a diversification tool and amid escalating geo-political tensions. In India context, though the lure for yellow-metal is fast receding as is evident from the country's imports of the precious metal, but nonetheless your portfolio should be having some sizeable portion into gold to weather out uncertain times like as prevailing currently with trade tensions between the US and China, North Korea and the US issues coupled with oil crisis and universally declining value of global currencies against dollar.
Now here are some suggested reasons to not take the precious metal off your investment list:
1. Rupee weakening: As was seen after the financial crisis of 2008, wherein gold as a safe haven regained much of its appeal and provided returns to the tune of appx 20% for around 5 years until 2013, the steadily depreciating rupee once again against the dollar in current times will work in the favour of gold prices. And the price of gold is bound to trend higher. But in the current times, strong dollar index is limiting the price rise for the yellow metal.
It is to be noted that the Indian rupee vis a vis the dollar and the value of dollar per se determine the price of gold.
2. Geo-political tensions between the US and China: After being halted for a while, the trade tension between the US and China are again re-surfacing and neither of the economies is likely to back down and end the crisis situation. In such a turmoil situation, when global growth becomes a concern and budgetary deficits in the US can come to picture, the US dollar could turn vulnerable due to less demand for the US debt assets by international buyers.
So, in current times of high disequilibrium, when both the macros and political landscape is unfavourable globally, gold can prove to be a good diversification tool and help tide over unwarranted portfolio risk.