Gold hits six-year high: What does this mean for investors?

'Perfect storm' in markets

Lauren Mason
clock • 5 min read

The price of gold is set to continue its rally thanks to a "perfect storm" of dovish noises from the US Federal Reserve, a stagnating US dollar and ongoing geopolitical tensions, according to some investment professionals who are increasing their exposure to the yellow metal.

However, other multi-asset managers warn the prospect of rising US Treasury yields, or an extended truce in the US-China trade war, pose too much of a risk to continue upping gold exposure in portfolios, particularly as its spot price already surpassed $1,400 for the first time in more than six years last month. On 20 June, gold's spot price reached the psychologically important $1,400 mark, following the US Federal Reserve's dovish policy statement the previous day, which also coincided with European Central Bank (ECB) President Mario Draghi's pledge to leave the door open for further u...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Commodities

Charles Stanley Direct: Explaining the gold spike

Charles Stanley Direct: Explaining the gold spike

Reaching a record high

Rob Morgan
clock 05 December 2023 • 4 min read
London Metal Exchange wins legal case against nickel trading suspension

London Metal Exchange wins legal case against nickel trading suspension

Brought by Elliot IM and Jane Street

Elliot Gulliver-Needham
clock 30 November 2023 • 1 min read
RBC Brewin Dolphin's Janet Mui: Energy price volatility is here to stay

RBC Brewin Dolphin's Janet Mui: Energy price volatility is here to stay

Energy price shocks

Janet Mui
clock 21 November 2023 • 4 min read
Trustpilot