As summer approaches, so too does the need to rethink our financial wardrobe. It’s akin to the joy of swapping our chic spring attire for breezy summer styles, inspired by the likes of fashion mavens Rihanna, Gigi Hadid, and Jennifer Lawrence. In the spirit of change, it’s time to consider a shiny asset – gold.
Gold has always been a glamorous affair, akin to the allure of the perfect “Sex and the City” Manolo Blahnik pumps. In recent times, gold prices took a little roller-coaster ride. Globally, prices flirted around $1,935.40 per troy ounce.
IIFL Securities’ Vice President, Anuj Gupta, equated the flat note closing of gold prices to a fashion trend on pause. Influenced by the hawkish US Federal Reserve statement and rising interest rates, gold began to lose its shine. It’s like spotting your favourite Nike sneakers on discount – the allure fades, at least for a while.
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Analyst Manav Modi from Motilal Oswal Financial Services Ltd. (MOFSL) added that gold and silver slipped as treasury yields and the dollar index bounced back. It’s similar to the pendulum swing of the unpredictable fashion industry – what’s in vogue one day may be passé the next.
But should you invest in gold? Think of it like picking a timeless piece from a designer collection that continues to be valuable season after season. Gold has gained around 10% year-to-date due to slower global growth, changes in the interest rate cycle, geopolitical uncertainties, and stress in the US banking sector. Yet, as the dollar index and yields recover, the gold rally may see a bit of a dip.
It’s not unlike scoring the best deal in a clearance sale – this dip might offer a lucrative level to accumulate gold. Modi advises maintaining a diverse portfolio, with around 10% devoted to gold. It’s like adding a dash of sparkle to your well-curated wardrobe. It’s always handy to have a golden asset when you need to turn heads, or in this case, turn profits!
Remember, embarking on your investment journey is more fun when you’ve got your friends (and an intuitive social savings app like Wellthi) by your side. So, ladies, grab your financial future with both hands and let’s paint the town gold!