Gold Rate Today: It’s good news for investors that gold prices have somewhat declined after a sharp rise. If investing in precious metals is your thing, you can buy them. Gone are the days when ladies would adorn their ensembles with gold jewellery on special occasions. The economy’s erratic growth rate and the asset’s long-term profitability are drawing interest from institutional investors as well. Additionally, it serves as a diversifier, lowering losses sustained during times of turbulence in the stock market. One common example of a liquid asset that can be useful in bad times is precious metal. Protecting against depreciation of currency and inflation is the yellow metal.
Gold is a hedge against economic downturns
Throughout history, gold has been viewed as a hedge against recessions because of its low correlation with other investment classes. In particular, there has historically been little relationship found between the performance of the stock market and gold, and gold typically moves against the dollar. This suggests that gold prices may benefit during periods when the dollar is depreciated. Given the likelihood of a recession, investors might weigh the benefits of gold as a hedge against declines in other asset classes. According to historical data, gold prices usually increase when inflation-adjusted bond yields decrease. This suggests that holding a portion of your portfolio in gold could be a prudent precaution against slowing economic growth.
Price of gold in some major cities
| Name of cities | Prices of 22k gold in rupees |
| Mumbai | 57700 |
| Delhi | 57850 |
| Kerala | 57700 |
| Pune | 57700 |
| Lucknow | 57850 |
| Patna | 57850 |
| Nagpur | 57700 |
| Chandigarh | 57700 |
| Surat | 57850 |
| Bhubaneswar | 57850 |
Gold Rate Today: Checkout the rates on MCX
The historically low correlation of gold with other financial assets makes it a popular choice among investors as a hedge against potential economic downturns. Rising gold prices usually result in lower bond yields. With a slight decrease of 0.13 percent, gold futures with a February 5, 2024 maturity date were trading at Rs 62100 per 10 grams on the MCX. The price of silver futures, which mature on March 5, 2024, saw an increase of 0.07 percent, and were trading at Rs 72099 per kg on the MCX.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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