Gold Price Prospects Remain Tied to Economic Indicators

Gold’s Performance Linked to Economic Indicators Gold’s performance is intricately tied to economic indicators, with two primary factors influencing its price: nominal rates and inflation.

Given the current proximity of nominal rates to their peak levels, it is anticipated that gold may continue to face some downward pressure.

Although our long-term outlook for gold remains positive due to sustained buying from central banks, geopolitical factors, and a renewed emphasis on de-dollarization, we have decided to reduce our gold allocation by 1 percentage point temporarily. This adjustment will be revisited and reverted to a full weighting when there is a substantial slowdown in US economic growth.