Amundi: Gold Still Has Room to Gain Gas, Investors Begin to Move Away from the Dollar
Amundi believes the gold rally still has room to continue, as many investors are reducing dollar-based assets and shifting to gold as America looks increasingly "alone" on the global stage.
According to Vincent Mortier (CIO of Amundi), this shift is also driven by the large US deficit and uncertainty about the future direction of the Fed's policy. Gold is considered a hedge when confidence in currencies weakens.
Mortier said Amundi has been increasing its gold holdings in recent years, and he sees reason to maintain that strategy. For him, gold is a long-term way to maintain purchasing power when the risk of "debasement" increases.
He also highlighted the style of political pressure and tariff threats from the Trump administration, including friction with allies over the Greenland issue. He believes such pressure could trigger the formation of new alliances and "resistance" from those being pressured.
From the demand side, Amundi sees gold buying coming largely from large players such as central banks and sovereign wealth funds. This means that the push for gold is not only coming from retailers, but also from institutions seeking diversification.
Mortier believes that alternatives to other major currencies are not currently attractive. The euro has its own challenges, the renminbi is considered "too fast," and the yen remains under pressure—making gold the most "reasonable" choice for many clients.
Key point (5):
- Investors are shifting from the dollar to gold due to global uncertainty.
- The US deficit and question marks about the Fed's policy are strengthening interest in gold.
- Amundi sees gold as a hedge and long-term purchasing power protector.
- Strong demand is coming from institutions (central banks and sovereign wealth funds).
- Other currency alternatives are not yet considered attractive, making gold the primary option. (asd)
Source: Newsmaker.id
