The current momentum is a signal to increase holdings in gold, according to Rajeev De Mello, global macro portfolio manager at GAMA Asset Management SA. Prices may now be vulnerable to a slight correction, he said, but any pullback is likely to bring in more buyers.
Gold’s rally to successive all-time highs isn’t over, according to macro fund managers interviewed by Bloomberg, with the factors that have powered a near-20% surge since mid-February expected to fuel more gains.
The gains have been fueled by expectations for the US Federal Reserve to lower interest rates this year — an environment that reduces the opportunity cost of holding the metal. Meanwhile, messy conflicts in the Middle East and Ukraine support demand for safe-haven assets, and purchases by global central banks add to a bullish backdrop.
