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Schroders, UBS Global Wealth Push Gold as Key Haven This Year

Schroders, UBS Global Wealth Push Gold as Key Haven This Year
(Bloomberg) -- Excessive government spending in the US and geopolitical uncertainty are underpinning calls from some investor heavyweights to buy gold as a hedge against sovereign debt risks. Most Read from Bloomberg24-Hour Stock Trading Is Booming – and Wall Street Is RattledBlackRock Buys Preqin for $3.2 Billion in Private Data PushTrump as President or Private Citizen: Why Supreme Court’s Immunity Ruling Is a TestFrance’s Market Rally Falters as Investors See Enduring RiskJustice Department t

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Schroders, UBS Global Wealth Push Gold as Key Haven This Year

According to Bloomberg, investor heavyweights are advising to buy gold as a hedge against sovereign debt risks due to excessive government spending in the US and geopolitical uncertainty. Schroder Investment Management and UBS Global Wealth Management are advocating for gold as a preferred trade to navigate the volatility in the second half of the year. Gold has climbed to a record this year amid expectations of Federal Reserve rate cuts and buying by central banks. Mark Haefele, CIO for UBS GWM, expects the trend of monetary authority purchases of gold to extend, with a recent World Gold Council report saying about 20 central banks expect to raise their holdings of the metal. Haefele expects the rally to continue with gold rising to $2,700 an ounce next year. Johanna Kyrklund, group CIO for Schroders, favors gold over Treasuries due to the fiscal risk, the geopolitical risk, and the inflation risk. She is concerned about the challenging inflation and fiscal environment. Gold stands to benefit if there are concerns about US debt and the dollar.

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