Gold rate today: The precious metal gold saw a marginal downward trend on Tuesday amid a rise in the US dollar and profit taking after a sharp surge seen in the last trading session.
However, Donald Trump’s tariff war with China and the European Union, along with geopolitical instability amid the escalating Russia-Ukraine war, capped the downside. Investors are also eyeing the US Federal Reserve interest rate announcement, slated for later this month.
On Multi Commodity Exchange (MCX), August gold futures declined by ₹308, or 0.31 per cent, to trade at ₹97,645 per 10 grams.
Gold prices in the international market also experienced a slight decline, pulling back from nearly a four-week high. Spot gold slipped 0.3% to $3,369.98 per ounce, after reaching its highest point since May 8.
U.S. gold futures remained unchanged at $3,390. In the previous trading session, gold had surged around 2.7%, marking its strongest one-day increase in more than three weeks.
Gold as a portfolio diversifier
Gold as an asset has been a good diversifier in any portfolio for decades, according to market experts.
According to the brokerage firm Angel One, gold demand and supply are inherent factors defining the volatility in the asset. The supply has been consistent at more than 4,000 tons every year for more than the past decade.
Jewellery contributes more than 50% of the overall demand for gold historically, and this trend has been similar for more than a decade. Central banks have also been increasing their interest in the yellow metal since COVID-19.
Is it the right time to invest in gold?
Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One, believes that the ongoing trend in gold prices will likely continue in 2025, boosting the yellow metal prices in the second half of 2025.
Mallya further said that investors should wait for a meaningful correction towards ₹85,000/10 gms for accumulation and recommends allocating at least 10 per cent of their portfolio allocation towards gold for better diversification.
“Gold prices have had a good run in the past one and a half years. However, for investors with a long-term perspective, they should accumulate on every dip, taking the benefit of the value average for higher returns,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
