What is behind the recent gold rally?

Shifting interest rates

clock • 4 min read

Investors have been prompted reassess their investments in recent months, and many have chosen to bolster their portfolios with safe haven assets as the global economy comes to an inflection point in its fight against inflation.

While inflation is finally falling, recent forecasts released by the IMF show that global growth is expected to decrease from 3.4% in 2022 to just 2.8% in 2023, primarily due to the upward trend of interest rates since December 2021. Deep Dive: Not all gold has the same value for investors As such, with central banks now balancing elevated prices with low growth, there is a significant amount of volatility in the markets, which is encouraging investors to protect their portfolios with gold. Consequently, prices have skyrocketed by around 10% since 2022 and could reach new heights i...

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

UBS AM launches carbon credit ETC

UBS AM launches carbon credit ETC

0.75% TER

Sorin-Andrei Dojan
clock 03 June 2024 • 1 min read
Tabula IM launches first ESG-focused physical gold ETC

Tabula IM launches first ESG-focused physical gold ETC

Focus on transparency of sources

Eve Maddock-Jones
clock 22 April 2024 • 2 min read
Deep Dive: Copper supply squeeze offers potential for gold-busting returns

Deep Dive: Copper supply squeeze offers potential for gold-busting returns

‘Significantly more attractive’

clock 05 April 2024 • 4 min read
Trustpilot