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The gold story is over for now

The mid-April blip in gold price is a reality check on the fallacy that the yellow metal can not lose...

In the past decade, news headlines around gold most often dealt with new all time high prices scaled by the yellow metal. On April 15, there was a reversal of fortune, when gold prices dropped by 9 per cent, the biggest single day drop in several years. The resulting pandemonium had a section of people writing off gold and another section convinced that the prices will rebound. The truth lies somewhere in between as price of gold has since then settled and slowly creeping up. True, over the past decade gold has had a golden run, but that run is unlikely to continue anymore.

To read why gold is an unproductive asset and why its price won't rise any further, SUBSCRIBE the May-June issue of Mutual Fund Insight now.