Gold’s diverse sources of demand, driven by demand from jewellery, investment, technology and central bank, have been the source of its low historical correlation to traditional asset classes such as equities and bonds. The unique drivers of gold have appealed to global investors looking for ways to manage portfolio risks and to benefit from its capital appreciation and wealth preservation attributes.
However, led by the rising US treasury yields, gold had a somewhat disappointing first half performance in 2021, with the yellow metal posting its largest first-half drop since 2013. Heading into the final quarter of 2021, and with various factors such as elevated inflation levels, rising valuations in risk assets, as well as still relatively accommodative monetary policy to continue to impact gold’s performance, what’s the outlook for gold?
The session will also examine the strategic case for gold and the strategic reasons why global investors including institutional investors and central banks hold a long-term allocation to gold.