The cues for gold prices seem to be mixed. Gold prices have taken a breather in last few days with easing of global trade tensions as US and China meet for the next round of trade talks. On the other hand, a further rate reduction by the US Federal Reserve and the oil supply concerns provided the support for oil prices. How should you move on the allocation to gold that you have in your portfolio?
The allocation to gold in an investor’s portfolio should ideally be part of the asset allocation made from the point of diversification. It helps bring some stability to the portfolio’s returns in periods of uncertainty when other asset classes are performing poorly.
Capital Drilling Ltd (LON:CAPD) provide complete exploration and production drilling solutions to customers within the global minerals industry, with a focus on the African markets & gold mining.