Invest In Gold Or Not.
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Gold futures prices are currently 36% higher compared to the price a year ago, cnbc reported.
The article said:
Gold futures prices are also up about 10% year-to-date and currently 36% higher compared to the price a year ago.
What is behind the rising prices of gold?
Two reasons stand out:
1. The rising global inflation rate. It’s a common practice by many investors to buy gold and use it as a good inflation hedge.
2. U.S. sanctions on Russia. U.S. sanctions on Russia date back to 2022. These sanctions have been the boost for higher returns on gold for at least a year now.
Would global headline inflation continue to rise or would it fall in 2025?
IMF said that it is expected to decline.
The bank said:
Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.
Would US lift sanctions on Russia?
U.S. President Donald Trump said on Feb. 25 during a press briefing at the White House. That sanctions against Russia will be lifted "at some point,"
So, should you as an investor invest in gold now?
The decision to invest in gold should be underlined by pessimism because of the uncertainty about the future.
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