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Yellow metal is off its high, should you invest in gold bonds right now?

In the short term, a possible Fed rate hike and an import duty cut by the government could trigger a correction

Shutterstock
Shutterstock

After giving negative returns in the previous three calendar years (2013-2015), gold has rallied around 20 per cent in the Indian market year-to-date. Having run up so much, there is a question mark on whether the yellow metal can repeat its stellar performance in the near term. The possibility of one Fed rate hike this year, and a couple more in 2017, also casts doubt on the yellow metal's prospects in the short term. Experts are of the view that only investors with a long-term investment horizon should invest in the latest tranche of sovereign gold bonds issued by the ...