Use price dips for 10% allocation as gold continues to lose lustre

Use price dips to build a 10% allocation to gold

Gold, long viewed as the quintessential safe haven for investors, has faced a tumultuous year. Having begun on a strong note, it has been on a downward trajectory over the past three months. Experts say investors should continue with their allocation to the yellow metal even though it may continue to disappoint for the next few months.

Driven by US Fed action

In March-April 2023, gold’s price surged in response to the risk aversion in the United States (US) as several regional banks collapsed in quick succession. 

The market expected the US Federal Reserve (Fed) to undertake multiple rate cuts