Asset Management Companies Increase Gold Positions Again Amid Price Drop
Major funds managing 27 trillion dollars are strengthening their positions by treating the pullback in gold prices as a buying opportunity.
The world's leading asset management companies have started to increase gold positions in their portfolios once again as gold prices retreated from their recent peaks.
Major Funds' Gold Move
The recent pullback in gold prices has led the world's largest asset managers to turn to buying again. Funds managing approximately 27 trillion dollars in assets are evaluating the price drop as an opportunity to increase their positions.
Expectations of Amundi and Other Companies
Amundi made purchases with the expectation that gold could reach the 5,000 dollar level again by the end of the year. Pictet Asset Management, Robeco, and Fidelity International were also among the institutions that increased their previously reduced positions earlier in the year.
An Indispensable Element of Portfolios
Lorenzo Portelli from the Amundi Investment Institute stated that they consider gold as a cheap, good hedging tool, and a liquid asset. Arnout van Rijn from Robeco expressed that gold has become an integral part of any normal portfolio.
Price Fluctuations and Buying Opportunities
Gold's retreat down to the 4,000 dollar levels was evaluated by some major investors as a new buying opportunity. Michael Cuggino, President of the Permanent Portfolio Family of Funds, noted that this decline is a very good buying opportunity for those who do not own gold.
Fed Policies and Short-Term Risks
The most significant short-term risks facing gold stand out as US interest rate policy and rising Treasury bond yields. Investors are closely monitoring the Fed's interest rate decision in September, inflation data, and bond yields.
Diversification Recommendation from Ray Dalio
Ray Dalio, founder of Bridgewater Associates, argues that investors should diversify their portfolios. Dalio states that investors wanting to protect themselves against the growing debt burden of the US can allocate up to 15 percent of their portfolios to gold.