"In recent months gold has seen its biggest rally since the 1970s, reaching a record high of $4,381.60 on 20th October. With this being a record high for the price of gold, many experts believed that it would be followed by a drop in price if historical trends are to go by; which is exactly what happened as a week later the price of gold had fallen by 8.1% to $4,025.07."
"Gold demand is falling right now predominantly because of reduced geopolitical instability, along with ongoing trade negotiations. However, if we consider historical trends, inevitable drops in price are typically followed by a surge. If this is to happen, you might argue that investors should take advantage of the current more affordable gold price because it might be a small window of opportunity."
"Having said that, gold investment should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time. Gold should always be seen as a long-term investment strategy. The time is right if you have the funds, you are in a financially stable position, and you're looking for an investment that will store value long-term without thought towards any short-term price fluctuations."
Gold experienced its largest rally since the 1970s, reaching $4,381.60 on October 20 before falling 8.1% to $4,025.07 a week later and dropping 5.3% on October 21, the largest single-day decline in over a decade. Current price around $3,963.39 reflects a roughly 10% decline from the peak. Demand has eased due to reduced geopolitical instability and advancing trade negotiations. Historical patterns show price declines are often followed by surges, creating potential buying opportunities. Gold functions best as a long-term store of value; purchases should depend on financial stability and a long-term investment horizon, not short-term price movements.
Read at London Business News | Londonlovesbusiness.com
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