Gold Prices Soar Amid Global Uncertainty: Expert Warns Against Short-Term Chasing
Gold prices continue to rise due to global uncertainty, but investors are advised against chasing short-term gains. According to Kuwait Television's market report, spot gold prices rose 0.4% during trading to around $3,406 per ounce, exceeding $4,080 on July 27.
Eisa Alloughani, a finance expert, cautions that predicting future gold prices is difficult and recommends building up gold holdings gradually as part of a long-term investment strategy.
Alloughani notes that gold has maintained its reputation as a safe-haven asset because it preserves value during periods of political and financial uncertainty. He emphasizes the importance of understanding the factors that influence gold prices, such as real interest rates and geopolitical uncertainty.
However, Alloughani stresses that gold is not suitable for every investor, particularly younger investors who may benefit more from assets like equities and real estate that can generate income and compound growth over time. He recommends maintaining a moderate allocation to gold within a diversified portfolio, with allocations ranging from 5% to 15%.