Investors should maintain 10-15% allocation to gold, say analysts

While inflation and war will provide support, rising interest rates may act as dampener

Gold has been volatile in recent weeks. After a sharp rally in March, after the Russian invasion of Ukraine, its price declined rapidly, falling to a two-month low of around Rs 51,100 per 10 grammes on Wednesday. With Akshaya Tritiya round the corner (May 3), many investors will want to add the yellow metal to their portfolios. Here is the strategy they could follow, given its current uncertain outlook.

Inflation providing tailwind

The biggest tailwind for gold is worldwide inflation, which is likely to be persistent since it is the result of fractured supply chains, worsened by the war. Gold is a