Analysts say the recent fluctuations in gold prices do little to undermine its role as a safe-haven asset. They argue the metal’s defensive appeal remains strong amid persistent concerns over inflation, geopolitical tensions and elevated global debt levels.
According to State Street, gold continues to be underrepresented in investment portfolios. Allocations to gold-backed exchange-traded funds account for less than 1 per cent of total global fund assets, well below the 5 to 10 per cent level the firm considers an appropriate long-term strategic weighting.
“As a base case, $6,000 is more likely than $4,000 this year, and we’re just above $5,000,” said Aakash Doshi, head of gold strategy at State Street Investment Management. “That’s a clear point to make.”
