Gold, crude oil and stocks are rising but its is important to know the right place to invest. Despite expectations of political volatility, gold prices are likely to cool down, according to market expert Ravi Singh. Since crude oil prices are also expected to align with inflation, only stocks are likely to offer some relief to investors. Know which stocks to invest in.
Gold, stocks or crude oil — where to invest. (Photo credit: Canva)
New Delhi: Amid recent highs seen in gold prices, stocks and crude oil, investors may be confused as to where they should invest their money. Gold prices are at record highs, having gained 12 per cent over the past month, while crude pil prices have crossed $90 per barrel levels.
Is it useful to invest in Gold?
Avoid gold investment since prices may lose steam at Rs 75,000-80,000 levels. Since the prices are aggressive at present, the rates are not attractive. This means that gold prices are likely to cool down eventually. Most volatility in the Middle East has been already priced in, said Dr Ravi Singh, senior VP, at Religare Retail Research. A key resistance level will be seen at $2400-2410 per ounce, and prices are likely to revert to $2250 per ounce, said Singh.
How are crude oil prices performing?
Crude oil could have been a viable option for investment if the price rise took place in the October-December quarter. While crude oil prices are expected to touch $100 per barrel in the near term, it will be inflation-adjusted and will not make a sizeable dent in the consumer’s pocket.
Should you invest in stocks?
This is a festive season for stocks owing to the election season and stocks are not dependent on which government returns to power. Stocks to focus on include:
- Small banks
- Power sector
- Energy
- Railways
- Defence
Markets will witness a double impact on account of elections. If the government continues, there will be a major jump. If the government changes, there will be a minor correction. No matter which government comes to power, these sectors are likely to witness the bulk of investments.
Under normal circumstances, this would have been a sale season for stocks owing to geopolitical conditions. However, the election season will not allow markets to conduct a ‘sale’ or an opportunity for investors to buy good stocks at a discount.
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