Recent week gold prices have slipped to $3,239 from its current peak of $3,500. Question is, should you still be holding onto gold? or is it time to buy the dip? Gold has long been hailed as a safe haven. When markets panic, gold often shines.
Its appeal lies in being a store of value, immune to the collapse of earnings forecasts or central bank rate swings. In times of war, inflation, or recession fears, investors instinctively rush to gold, seeking shelter from the storm. But here’s the catch: gold doesn’t always glitter.
Why? Because gold doesn’t yield income. When risk assets like stocks soar, and real interest rates rise, investors rotate out of gold into higher-return opportunities.
This inverse dance between gold and equities is not constant but common. In 2020, gold spiked when COVID shocked markets. In 2021 and 2023, during equity rebounds, it cooled off. Now in 2025, as markets oscillate between fear and FOMO, gold's moves reflect shifting sentiment.
Bottom line: Gold is a hedge. It thrives on fear and uncertainty but retreats when confidence returns. Use it wisely as a diversifier, not a bet against growth. Review your portfolio to make sure it reflects the right blend for today’s market.
