BlackRock Says Gold ‘Failing’ as Equity Hedge, Faces Risks
- Bullion’s ability to guard against inflation is ‘exaggerated’
- Traditional haven has retreated in 2021 after rally last year
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Global money manager BlackRock Inc. just delivered a double-barreled warning on the merits of holding traditional haven gold right now.
Bullion is proving to be a less effective hedge against moves in other assets, such as stocks, as well as inflation, according to Russ Koesterich, portfolio manager for BlackRock’s Global Allocation Fund. Moreover, gold faces headwinds should the recovery pick up pace, he warned in a blog post.