By Admin 
Gold has given tremendous returns to investors in the last two years. In October 2022, where it was priced at $ 1630 an ounce, now it has reached $ 3260 an ounce. That is, about 100 percent return in just 28 months. However, now it seems that there has been some brake in its fast, because in the last few weeks, prices have fallen.
Why was the price of gold increased?
Global conditions have been very uncertain over the last few years, such as Russia-Ukraine War, America’s economic uncertainty, tension in the Middle East, and a huge amount of gold purchases by central banks around the world. Due to these reasons, investors bought gold as a “safe investment” and its demand increased. As a result of this, gold prices continued to rise continuously.
Why has the speed stop recently?
In recent weeks, the rise of gold has stopped. The concern about tariffs in America has reduced and Israel-Iran’s conflict also ended with peace in just 12 days, which has reduced the fear in the market slightly. Apart from this, in April, when the price of gold crossed the level of Rs 1 lakh per 10 grams, then the investors started recovery and now it has come down to about 4 percent, ie up to Rs 96,180.
Is this a temporary decline or the end of the rally?
Market experts believe that this decline may be temporary and the demand for gold may increase again in the long term. There is a big reason behind this that many central banks around the world are still buying gold. According to the World Gold Council, 43 percent of the Central Banks are planning to buy more gold in the next 12 months.
Will gold run again by cutting interest rates?
Experts believe that whenever interest rates decrease, investors turn to assets that do not pay interest, such as gold. The US is likely to cut interest rates from September 2025, and it is estimated that by 2026 there may be a total cut of 200 to 300 basis points. This can also lead to re -increase in gold prices.
Dollar weakness and investors inclined
The dollar index is currently below 100, which reflects weakness in American currency. At such a time, investors often leave the dollar and move towards gold. This is why Bank of America estimates that by 2026, the price of gold can reach $ 4000 an ounce.
What should investors do?
If you are a long-term investor, this decline can be a good chance to gradually include gold in your portfolio. But keep in mind that gold is already very high, so there is a possibility of decline in it. The advice is to apply only 5 percent to 10 percent of your portfolio in gold, not more than this.
Gold will still remain ‘safe investment’
As long as uncertainty and geopolitical tension continue in the world, gold will remain reliable for investors. The glow of gold has slowed down, but did not fade completely. For those who think wisely, this is the time to gather gold slowly.
Also read: Gautam Adani’s ‘Sadhana’ resolution in Jagannath Puri’s Rath Yatra … food, water to security