Gold’s Rapid Ascent Isn’t Over Yet, Fund Managers Say
- The safe haven asset has repeatedly hit record highs this year
- Money managers are placing more long-term bets on bullion
Gold’s sharp and sustained move higher has vexed some observers because it’s happening at a time when real yields remain elevated.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Gold’s rally to successive all-time highs isn’t over, according to macro fund managers interviewed by Bloomberg, with the factors that have powered a near-20% surge since mid-February expected to fuel more gains.
The gains have been fueled by expectations for the US Federal Reserve to lower interest rates this year — an environment that reduces the opportunity cost of holding the metal. Meanwhile, messy conflicts in the Middle East and Ukraine support demand for safe-haven assets, and purchases by global central banks add to a bullish backdrop.