Gold has always been considered as a defensive asset class and a hedge against inflation. Besides, gold can be liquified and easily converted into hard currency.
It is good to invest when there is a slowdown in the global economy. But it is also not advisable to invest a major part of savings in gold. A 5% allocation is sufficient.
One must also remember that gold does not offer any tax advantages. Besides, the high price of gold has begun to scare buyers, and traders are waiting for a correction to buy gold.