Behind the glitter: why is gold increasing in value, how should you invest?
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Gold is pegged to the US dollar. When the US currency falls, the price of gold in dollars rises. The $ is expected to weaken as the Federal Reserve has indicated it will cut interest rates this year
The oldest asset class – precious metals such as gold, silver and platinum – was among the better performers of 2024. Gold in particular has risen 11 percent since January. The price has reached record highs and commodity traders expect the price to continue rising.
That’s 11 percent, expressed in US dollars. In rupee terms, returns are higher because the Indian currency has lost ground against the dollar.
Gold is not only one of the oldest known assets; although it is one of the more unusual ones. In industrial terms it is virtually useless
First print: April 9, 2024 | 10:34 PM IST