Improved risk appetite is weighing on gold prices, including retail ETF-based selling. But there have been no major outflows despite an 8-week rally in assets that might have typically derailed this rally. Gold prices are +5% month-to-date and expect to hold here.
Many investors continue to allocate capital to bullion as a hedge on their wider portfolios or taking directional views. A look at most recent 13F filings (required quarterly listings and disclosures of top positions required by the SEC for investors with $100m or more in assets) show some of the biggest investors in the world with gold as their core or even largest position. Paulson and Co. as well as Eton Park Capital Management, Tiger Management and many other top managers list gold or specific miners (FI, HMY, AU) as core holdings.
Gold may struggle in the short run but don't expect a major pullback. Why? Inflation returns, physical demand is changing with China adjusting its reserve mix, speculation is coming back into commodities and commodity-based mutual fund inflow remains strong.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment