Gold has not lost its appeal, according to a survey of professional money managers conducted by “Bloomberg”. Some even plan to increase their gold portfolio by the end of the year, hoping for a rise in the price of gold.
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Although gold itself does not add value and its price growth is slow, managers of millions and billions regularly tend to channel some of their money into the precious metal, as it is seen as a guarantor of stability in times of market uncertainty.
Bloomberg polled professional money managers to find out what their plans are for gold. None of the respondents said they would reduce their gold holdings over the next 12 months, and five out of twelve said they planned to increase their holdings. More than two-thirds of them expect gold prices to rise, with five expecting an all-time high. The survey was conducted from August 10 to August 22, 2023.
As “Bloomberg” explains, this is related to the still obvious uncertainty about when the US Federal Reserve System will stop raising interest rates. Global central banks continue to grapple with stubborn inflation, and the US labor market has remained surprisingly resilient amid aggressive monetary tightening.
While there are some signs that investors are bracing for rates to stay higher for longer, most expect no more rate hikes and a gradual cycle of cuts next year.
“We see that there is demand for gold from investors who are waiting for the Federal Reserve to finish raising interest rates,” said Darvey Kung, head of commodities and portfolios at DWS Group. He believes that gold will reach a record $2,250 per ounce in the next twelve months. On August 22, the price of zeta was around $1,900 per ounce.
Gold hit a record high in August 2020 when the price was around $2,075 per ounce.
2023-08-23 07:05:23
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