BlackRock Heaps Praise on Gold's Role as a Tough Year Opens
- ‘We’re experiencing a slowdown,’ manager Russ Koesterich says
- Global Allocation Fund adding to bullion holdings through ETFs
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Gold may extend gains as global growth slows, equity market volatility remains elevated and the Federal Reserve is expected to ease back on the pace of policy tightening this year, according to a BlackRock Inc. money manager, who says the precious metal offers an effective hedge.
“Recession fears are probably overblown, but I do think we’re experiencing a slowdown,” Russ Koesterich, portfolio manager at the $60 billion BlackRock Global Allocation Fund, said in an interview, citing decelerations in the U.S., China and Europe. While BlackRock doesn’t have a price target, it’s been raising bullion holdings since the third quarter through exchange-traded funds.