Gold Rate Today: The fact that gold prices have somewhat decreased following a rapid increase is excellent news for investors. You can purchase precious metals if investing in them is your thing. The days of women accessorising their outfits with gold jewels for special occasions are long gone. Institutional investors are also showing interest in the asset due to its long-term profitability and the economy’s unpredictable growth pace. It also acts as a diversifier, reducing losses incurred during periods of volatility in the stock market. Precious metal is a well-known illustration of a liquid asset that can be helpful during difficult times. The yellow metal provides protection against inflation and currency depreciation.
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 0.17 percent, gold futures with a February 5, 2024 maturity date were trading at Rs 62860 per 10 grams on the MCX. The price of silver futures, which mature on March 5, 2024, saw an increase of 0.80 percent, and were trading at Rs 71526 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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