1 day ago
Major Money Managers Rebuild Gold Positions After Price Drop
Large investment companies are buying gold again after its price fell.
They think gold can protect portfolios when markets or currencies become uncertain.
Some managers believe gold could reach $5,000 per ounce by the end of the year.
However, gold does not pay interest, so it can become less attractive when interest rates and government bond yields rise.
Federal Reserve Chair Kevin Warsh recently warned that US inflation was not slowing enough.
This made investors expect that interest rates might rise.
Gold’s supporters say central banks are buying more of it and investors want to spread their money across more assets.
Other managers caution that gold’s rise may be uneven and that worries about the dollar may be overstated.
Amundi, Pictet, Robeco and Fidelity recently added to gold holdings reduced earlier this year.
Amundi expects gold to return to $5,000 an ounce by year-end, while bullion traded near $4,400 on September 5.
Higher Treasury yields and increased expectations for a Federal Reserve rate hike could limit gold’s gains.
Managers cited central-bank purchases, portfolio diversification and concerns about the US dollar as reasons to favor gold.
World Gold Council data showed central banks bought 289 tons of gold in the second quarter, the highest second-quarter total on record.
- Who
- Major asset managers, including Amundi, Pictet Asset Management, Robeco Institutional Asset Management, Fidelity International and BNP Paribas Asset Management, along with other investment professionals.
- What
- Money managers are rebuilding or maintaining gold positions after reducing them earlier in the year.
- Where
- The investment decisions concern global markets, with bullion trading in London and the Federal Reserve and US Treasury influencing sentiment.
- When
- The buying occurred in recent weeks; the report was published September 5, 2026, and cites data through the week ended August 25.
- Why
- Managers cited gold’s role as a portfolio hedge, central-bank purchases, diversification and concerns about inflation, geopolitical uncertainty and the US dollar.
Gold remains an important hedge
Gold faces rate-driven obstacles
Portfolio role
Gold remains an important hedge
Asset managers said gold is relatively cheap, liquid and useful as a hedge against macroeconomic and geopolitical uncertainty.
Gold faces rate-driven obstacles
Gold does not pay interest, so higher borrowing costs and Treasury yields can make it less attractive than interest-bearing assets.
Dollar concerns
Gold remains an important hedge
Some managers said concerns about US fiscal credibility and the dollar’s role as a store of value are encouraging diversification into hard assets such as gold.
Gold faces rate-driven obstacles
Other managers said alarm about the dollar was overstated and noted that there is no obvious replacement for it.
Price outlook
Gold remains an important hedge
Amundi expects gold to reach $5,000 an ounce by year-end, while other managers anticipate a long-term pattern of higher highs and higher lows.
Gold faces rate-driven obstacles
Managers warned that a move above the recent ceiling near $4,600 may not be smooth because of inflation concerns, higher yields and possible Federal Reserve tightening.
Key facts
- Recent gold price
- Bullion was trading near $4,400 an ounce in London on September 5.
- Amundi forecast
- Amundi expects gold to return to $5,000 an ounce by year-end.
- Recent price retreat
- Gold fell from an all-time high near $5,600 an ounce in January to about $4,000 in June.
- Central-bank buying
- Central banks made net purchases of 289 tons in the second quarter, according to the World Gold Council.
- Investor positioning
- Funds’ net-long gold position reached its highest level of the year in the week ended August 25.
- Key market pressure
- Higher Treasury yields and expectations for at least one Federal Reserve rate hike before year-end are weighing on gold.
- Portfolio recommendation
- Ray Dalio said investors should consider putting as much as 15% of their money in gold to hedge against a potential US debt crisis.
Quotes
Lorenzo Portelli
Head of cross-asset strategy at the Amundi Investment Institute
“The downdraft to $4,000, if you didn’t own it already, was a very good buying time”
thehindubusinessline.com
“Gold is an asset that we consider to be cheap, a good hedge and reasonably liquid”
thehindubusinessline.com
Arnout van Rijn
Portfolio manager for multi-asset and equity solutions at Robeco
“It’s become a much more acceptable asset. It’s become part and parcel of every regular or normal portfolio.”
thehindubusinessline.com
Sources
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