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.