Fidelity Doubles Gold Stake Amid Fed Policy Uncertainty

Fidelity International, one of the world's largest asset managers, has significantly increased its exposure to gold in one of its funds. The move comes as investors reassess the stability of long-term U.S. Treasuries and grow wary of the Federal Reserve's policy direction.

The fund manager overseeing the fund confirmed that the gold position was doubled over the past three weeks following the Federal Reserve's July meeting, where the central bank maintained its benchmark interest rate while signaling a cautious approach to future cuts.

Efstathopoulos noted that this shift reflects a broader move by investors away from long-term Treasuries and toward gold, which is often seen as a hedge against economic uncertainty and currency devaluation. If the U.S. dollar's status as a safe-haven currency continues to weaken, the fund might consider raising its current 5% cap on gold holdings.