Gold Prices Soar by 9.6% Amid Expectations of Lower Real Rates

Gold prices have rallied by 9.6 per cent in the past month but investors are advised to be cautious and not chase the rising prices. Experts say that expectations of lower real rates, US fiscal concerns, and central-bank buying are driving demand for gold.

A hawkish Federal Reserve, higher real yields, and a stronger dollar could trigger a correction, while persistent fiscal uncertainty could extend the rally in coming months. Monetary easing, a weaker dollar, and geopolitical tensions also support the continued rise of gold prices.

Investors are advised to cap their allocation at 10-15 per cent and consider staggered purchases through gold ETFs. Regular investing reduces the risk of entering at the top after a sharp rally, while choosing gold ETFs carefully is crucial to minimize costs and maximize returns.