Money Managers Say They'll Stick With Gold

8.24.23 - Money Managers Say They'll Stick With Gold

Gold last traded at $1,894 an ounce. Silver at $23.33 an ounce.

Investors Say They'll Stick With Gold as Fed Cycle Nears End -Yahoo! Finance

by Sybilla Gross

(Bloomberg) -- Gold isn't losing its allure, according to a dozen money managers who all told Bloomberg News they expect to maintain or raise their exposure to the precious metal in the coming 12 months.

Bullion has stumbled in recent weeks in the face of multiple headwinds from surging real yields to a stronger US dollar and the prospect of US rates staying higher for longer. The survey of investors - from sovereign wealth managers to hedge funds - offered some modest optimism for price prospects into 2024.

None of the respondents said they would cut their exposure to gold in the immediate 12 months, and five of them said they expected to boost their allocations. More than two thirds of them see prices rising, and five expect a clear all-time high. The poll was conducted between Aug. 10 and Aug. 22.

There's still obvious uncertainty around when the Federal Reserve will end the bank's tightening cycle, which would be an important positive for non-interest bearing gold. Global central banks continue to grapple with stubborn inflation, and the US labor market has remained surprisingly resilient in the face of aggressive monetary tightening.