“The news that the RBI will curb imports of gold by agencies has weighed prices down today as it is a wider restriction and could imply lower imports of gold into the country,” Societe Generale analyst Robin Bhar said in the article.
Despite recent correction in gold, investors should not shy away from the asset class altogether. [Gold ETF Traders More Bullish After Recent Sell-Off]
“While gold has historically been seen as a potential cash alternative in periods of economic uncertainty and a hedge against inflation concerns or a weakening dollar, many invest in gold as a long-term holding due to its diversifying properties,” BlackRock said. “Gold has historically shown little to no correlation with other major asset classes, including commodities, and gold is a beneficiary of negative real interest rates which have persisted for some time in many developed economies.”
For more information on gold, visit our gold category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.