Gold Rate Update: In unstable economic times, gold has historically proven to be resilient, frequently increasing in value when other assets decrease. In an uncertain economy, its value usually remains constant or even increases. One feature that distinguishes the Indian financial landscape is the US dollar’s persistent depreciation against the Indian rupee. In light of this, gold has become a popular substitute because of its tendency to increase in value in response to changes in exchange rates. You might want to put off investing because gold has recently seen a slight increase in price.
Why gold is extremely effective portfolio diversifier?
According to some economists, the low to negative correlation that gold has with all other major asset classes makes it an extremely effective portfolio diversifier. Nevertheless, gold typically exhibits no statistically meaningful relationship with other popular asset classes. Yet, others assert that there is proof of an inverse relationship between gold and stocks during periods of severe stock market declines. Given that macro- and microeconomic factors that impact the returns of most asset classes have little effect on the price of gold, it serves as a hedge against portfolio volatility. The risk or volatility of a portfolio can be decreased by adding gold to it for a given level of returns.
Gold Rate Update: Price of gold in some major cities
| Name of cities | Prices of 22k gold in rupees |
| Mumbai | 57750 |
| Delhi | 57900 |
| Kerala | 57750 |
| Pune | 57750 |
| Lucknow | 57900 |
| Patna | 57900 |
| Nagpur | 57750 |
| Chandigarh | 57750 |
| Surat | 57900 |
| Bhubaneswar | 57900 |
Gold Rate Update: 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 increase of 0.09 percent, gold futures with a February 5, 2024 maturity date were trading at Rs 62530 per 10 grammes on the MCX. The price of silver futures, which mature on March 5, 2024, saw an increase of 0.11 percent, and were trading at Rs 74910 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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