The Gold is regarded as an hedge instrument during the times of inflation. Inflation normally leads to higher interest rates which would mean Investors move away from Govt Bonds and shift over to investments in Gold. However while the Interest Rates in India are falling, an expectation of a possible rate hike in US and amidst tensions prevailing in a possible conflict between Korea and US, the Gold has been shining. Another interesting fact is that while Gold has been rising, Oil has been either falling or is being stagnant unlike what used to happen in the past!!
Hence Past trends do not guarantee Future Approach 🙂