Gold price dips as US dollar rebounds from 7-week low. Buy, hold or exit? | Mint – Mint

Gold prices have been on a roller coaster ride in recent weeks, with the precious metal dipping as the US dollar rebounds from a 7-week low. The US dollar index, which measures the greenback against a basket of six major currencies, rose to a seven-week high of 97.45 on Friday, up from a low of 96.45 on June 28.

The rise in the US dollar has weighed on gold prices, with the yellow metal falling to a two-week low of $1,422.90 an ounce on Friday. The precious metal had been trading at a six-year high of $1,456.90 an ounce on June 25.

The US dollar has been on a tear since the Federal Reserve cut interest rates to near zero in March, as investors sought the safety of the greenback amid the coronavirus pandemic. The US dollar has gained more than 4% since the start of the year, while gold prices have fallen more than 5%.

So, what should investors do with gold now?

For investors looking to buy gold, now may be a good time to do so. Gold prices are still near their six-year highs, and the precious metal is still seen as a safe-haven asset in times of economic uncertainty.

For investors who already own gold, it may be wise to hold on to it. Gold prices are likely to remain volatile in the near term, but the long-term outlook for the precious metal remains positive.

For investors looking to exit their gold positions, now may not be the best time to do so. Gold prices are likely to remain volatile in the near term, and investors may be better off waiting for a more favorable time to sell.

In the end, it is up to individual investors to decide whether to buy, hold or exit their gold positions. But with gold prices still near their six-year highs, now may be a good time to buy for those looking to add the precious metal to their portfolios.