Gold (GC=F) August futures opened at $4,527.60 per troy ounce on Friday, down just 0.1% compared to Thursday’s closing price. The gold price moved higher in early trading. At 6:27 a.m. ET, the price of gold reached $4,560.40.
Reports that President Trump has received a 60-day truce extension with Iran, which he could sign at some point today, have renewed hope in the markets that a resolution to the war is not far behind and that the Strait of Hormuz can once again reopen with unrestricted access.
Investors have little to go on besides hope that both sides are making strides toward a peaceful resolution that would restart the flow of oil and natural gas to countries around the world.
This week, the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Index, rose 3.8% in April, a three-year high, driven by the war in Iran. Inflation concerns have all but cemented the Fed’s position to keep rates at current levels following the next Fed meeting in mid-June.
Current price of gold
The opening price of June gold futures on Friday was nearly flat compared to Thursday’s closing price. Here’s a look at how the gold price has changed versus last week, month, and year:
One week ago: +0.2%
One month ago: -1.5%
One year ago: +37.9%
On Jan. 29, gold’s one-year gain was 95.6%.
24/7 gold price tracking: Don’t forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week.
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How much gold should you own?
A gold investment can add stability and inflation protection to your portfolio. But it can also dilute your gains when stock prices are rising quickly. Finding the right balance between gold’s diversification benefits and profiting from growth potential in other assets can be challenging.
Even the experts are divided on how to achieve the correct balance. Below, five experts explain their recommended gold allocations, which range from 0% to 20%.
Learn more: How to invest in gold in 4 steps
No gold: Trade-off is too high
Robert R. Johnson, professor at Creighton University’s Heider College of Business, does not advocate gold investing. In his words, “while having a small position in precious metals may dampen portfolio volatility in the short-run, the tradeoff between slightly dampened volatility and the lost long-term return is certainly not a prudent one, particularly for Gen Z/millennials with long investing time horizons.”
2% to 5% allocation, depending on the situation
Brett Elliott, director of content and SEO at American Precious Metals Exchange (APMEX), recommends setting an allocation that aligns with your investing goals.
Growth-oriented…
Source: finance.yahoo.com
