Bullion/Gold softens on strenghtening dollar

摘要

Gold for years has been valued as a global currency, a commodity which is considered to be a good investment. Recent years have seen a striking increase in investor interest in gold. While a sustained price rally, underpinned by the fact that demand consistently outstrips supply, is clearly a positive factor in this resurgence, there are many reasons why people and institutions around the world are once again investing in gold. In recent time, when other asset classes, especially financial markets globally have not performed, gold which is not correlated with other asset classes has outperformed them. While alternative assets and traditional diversifiers often fail during times of market stress or instability, even a small allocation to gold may significantly improve the consistency of portfolio performance during both stable and unstable financial periods. A small allocation to gold depending on the risk level of the portfolio has obvious benefits due to its low or negative correlation with most other asset classes.