Major Asset Managers Bet Big on Gold Despite Higher US Rate Concerns

Major asset managers are rebuilding their gold positions despite concerns over higher US interest rates.

According to recent developments, Amundi, Europe's largest asset manager, has increased its gold holdings in anticipation of the metal returning to $5,000 per ounce by year-end. Pictet Asset Management, Robeco Institutional Asset Management, and Fidelity International have also increased their holdings after reducing positions earlier this year during gold's retreat from its record high.

Lorenzo Portelli, Head of Multi-Asset Strategy at the Amundi Investment Institute, stated that gold remains an asset considered cheap by the firm, offering hedging benefits and reasonable liquidity. However, he noted that Amundi would need greater clarity on the US Federal Reserve's interest-rate path before considering further purchases.

Over 12 asset managers whose firms collectively manage $27 trillion in assets have increased their gold holdings or maintained allocations reflecting expectations of further gains in the precious metal. Many money managers believe a break above the resistance level near $4,600 per ounce will be challenging due to rising US Treasury yields and increasing expectations that the Federal Reserve could raise interest rates at least once more before year-end.