While the equity markets and gold share an inverse relationship, with gold as a general perspective gaining sheen, when the equities are on a losing streak, the momentum on the yellow metal has not remained as though. Since the global market rout on March 9, 2020, gold has been on a losing streak for three-continuous sessions now and fallen off its highs reached recently.
Gold Highs in India
In India, gold scaled to a record high of Rs. 45,000 per 10gm and after 3-day's losses, 24-K gold is available for Rs. 43,650 per 10gm. So, should the losses in gold be a trigger for you to bet on the precious metal?
Only Buy At Dips But For Long Term
While some of the experts advise investors to sit on cash amid the volatility across asset classes, the future may hold good for the yellow metal given the current crisis both at economic and socio-political level.
Back home given the high prices, there is seen an investment slump when it comes to demand for physical gold, but nonetheless there is demand for Gold ETFs with a huge jump in net inflows in the February month at Rs. 1483 crore versus Rs. 202 crore in the previous month.
Also, globally there is reported that due to steep correction global equity market, there is not much of an impact or rather the situation has not supported gold as a 'safe haven' asset.