As gold price hits all-time highs, know what macro fund managers are pointing out - 10 important points to note - Hindustan Times
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As gold price hits all-time highs, know what macro fund managers are pointing out - 10 important points to note

Apr 10, 2024 06:34 PM IST

Gold price is rising and hitting all-time highs. In this situation what is actually happening in the markets? 10 points to note.

Gold is everybody’s favourite, especially when global political and economic situations look tense and things may be in for a change. While there are no real dark clouds over the horizon, the common investor would be looking at what next is possible or if there is something that he or she does not know about. Well, we have experts here who are revealing their expectations about how gold price trend is likely to pan out. The notable point is that gold price has seen an almost 20% jump from mid-February levels and significantly, these factors are still active and may boost the rate further north. Bloomberg has reported what the macro fund managers are saying - check out the 10 most important points to focus on:

Gold price is rising and hitting all-time highs. In this situation what is actually happening in the markets? 10 points to note(Bloomberg)
Gold price is rising and hitting all-time highs. In this situation what is actually happening in the markets? 10 points to note(Bloomberg)

1. Macro fund managers believe that Gold's rally to successive all-time highs is far from over and they expect the jump to continue due to various factors.

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2. Expectations of the US Federal Reserve lowering interest rates reduce the opportunity cost of holding gold, thus driving its demand, Bloomerg reports.

3. Conflicts in the Middle East and Ukraine, alongside purchases by global central banks, support the demand for Gold as a safe-haven asset.

4. Rajeev De Mello, a global macro portfolio manager, suggests increasing holdings in gold due to its current momentum.

5. Despite elevated real yields, investors continue to show enthusiasm for gold, with net long positions rising to a four-year high.

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6. Central banks' purchases of gold is contributing to the bullish outlook.

7. And due to the above point, the scarcity of gold (due to central bank purchases) further supports its long-term value, Bloomberg quoted investment director Duncan MacInnes as saying.

8. Once the Federal Reserve implements planned rate cuts, fresh inflows into ETFs are expected, further boosting gold prices.

9. Also, some investors are favouring Gold in anticipation of increased allocations in H2.

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10. The New York Comex gold futures market is seeing more and more bullish bets on gold.

However, do note that there are alternatives and all that shines may not just be gold. Some investors are leaning more towards equities, which too have been soaring along with metals. And, after all, not putting all your eggs in one basket always makes sense.

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