The rising US dollar and rising bond yields are dampening demand for non-yielding bullion, which, unlike other asset classes, does not appreciate on its own. 

Gold, which has an inverse relationship with stocks, protects investors during times of market volatility. This makes gold an excellent portfolio diversifier during moments of high inflation, geopolitical, or financial turmoil. 

Gold’s lustre has faded in recent months, as its prices have continued to fall for two months amid economic uncertainties.

Investors are looking at how they should deploy funds in gold and which form of the bullion would be the best method for them after the yellow metal’s ongoing underperformance. 

Market analysts believe that gold is a good investment for all types of investors, and that it should be kept in one’s portfolio to protect against adversity. 

Gold should be used to invest 10-15% of uninvested funds, while silver should be used to invest 5%.

Despite its great returns, the precious metal has seen a lot of volatility over the last 15 years. It increased by 31% in 2007, but decreased by 28% in 2013. 

The proportion of gold in a portfolio depends on risk tolerance, time horizon, and market conditions. However, while there is no perfect percentage of gold in a portfolio, the prevailing consensus is that it should be between 10% and 15%.

A prudent investor can dedicate 5% of their portfolio to yellow metal, while a moderate investor can hold up to 10%, and an aggressive investor can purchase more than 10%. 

There are a variety of gold instruments available at the moment, all of which mirror the general price movement of gold, and one should invest in gold according to their time horizon. 

For investors who are more actively involved in the market, gold ETFs and derivative instruments are excellent. These instruments will reflect real-time changes in gold prices, and investors may need to participate on a daily basis.

A prudent investor can dedicate 5% of their portfolio to yellow metal, while a moderate investor can hold up to 10%, and an aggressive investor can purchase more than 10%. 

There are a variety of gold instruments available at the moment, all of which mirror the general price movement of gold, and one should invest in gold according to their time horizon. 
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