Gold rush: Rebalance if your allocation has risen beyond the 10% mark

New investors should avoid the tendency to chase past returns; instead, they may invest in a staggered manner provided they have a 7-10-year horizon

Gold recently surged past the $3,000 per ounce mark in the international market. Investors, both existing and new, should avoid extreme reactions and proceed with caution in the wake of this landmark level being crossed.

 

Key drivers of the rally

 

Trade war: President Donald Trump’s tariffs on trade partners could have several consequences. “These policies could be inflationary for the US. There is also a possibility of competitive devaluation of currencies by exporters to the US. We could also have a mix of the two scenarios. Either or both of these developments will lead to investment demand for gold both