Why You Should Add Gold to Your Portfolio Right Now

Gold has fallen about 12% from the peak of $5,354 an ounce it touched in late January. That's after the price of the yellow metal soared more than 180% over the past five years.Much of that increase was due to central banks around the globe stocking up on gold in order to diversify away from the dollar in the wake of Russia's invasion of Ukraine and the U.S.'s response of freezing Russia's foreign exchange reserves. Russia's war on Ukraine continues with no end in sight, while the war in the Middle East is creating new tailwinds for gold, including rising inflation expectations and geopolitical uncertainty.So why has gold dropped recently? It's at least in part because Turkey's central bank just dumped 58 tons of its gold -- about $8 billion -- on global markets to support its currency after the Iran war broke out. That drove the supply of gold up and the price down. Arab nations, meanwhile, are also likely selling gold reserves to beef up their defenses.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool