On Tuesday, September 27, gold prices rose slightly from their lowest level in more than two years. However, the dollar's rise came to a halt amid concerns that the U.S. Federal Reserve will further tighten policy to quell soaring inflation.

Gold prices are expected to remain volatile in the short term as the U.S. dollar strengthens and interest rates rise. Nevertheless, the outlook is positive as investors are buying gold as a hedge against global financial market uncertainties, according to the World Gold Council. As such, gold climbed 0.6% to US$1,631 an ounce after hitting the lowest level since April 2020 at $1,620.20 on Monday.

Stocks and bonds, both of which are core assets for investors around the world, are down while gold is still doing very well .Diversification is the main reason investors are buying gold, at least on the institutional side, according to reports. And this year, diversification in gold is working very well.