This analyst believes it's time to allocate 10% of investment portfolio to gold

Veteran Emerging Markets investor Mark Mobius has advised that it is a good time to allocate 10% of one’s investment portfolio to gold. Mobius highlighted that increasing demand from Indian buyers is playing a key role in pushing gold prices higher.

This recommendation comes as gold prices have surged significantly.

Over the last 12 months, gold prices in India have increased by over 18%.

As of September, 2024, the price for 24-carat gold stands at around ₹74,000 per 10 grams, up from ₹63,203 per 10 grams at the same time last year.

Although gold experienced a slight dip in prices on Monday (September 30), the overall trend has been upward.

Globally, spot gold was down by 0.2% at $2,653.38 per ounce on Monday (September 30) due to the strengthening US dollar.

A stronger dollar tends to make gold less attractive to holders of other currencies.

Despite the temporary decline, gold has risen more than 14% this quarter globally.

This marks its best performance since early 2016, according to a Reuters report.

On a monthly basis, gold has gained 6% in September alone, driven by factors such as the Federal Reserve’s rate cuts, China’s economic stimulus measures, and ongoing geopolitical tensions, especially in the Middle East.

Analysts are optimistic about gold’s future performance.

Tim Waterer, Chief Market Analyst at KCM Trade, stated that gold could make a run at $2,700 per ounce if upcoming US labor market data aligns with the Federal Reserve’s potential for more rate cuts.

US gold futures already increased by 0.3% to $2,674.80.

Gold remains a preferred investment in periods of economic uncertainty and low interest rates.

With geopolitical risks intensifying and the possibility of more aggressive rate cuts by the Federal Reserve, investors are looking to gold as a hedge against future volatility.