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

'Perfect storm' in markets

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...