Investment Insights

Gold hit new highs in February, supported by a weaker US dollar and extending its y-t-d gains to 9%. Rising inflation expectations, lower rates, and continued geoeconomic uncertainty are playing in gold’s favour.  

Gold punched through all-time-highs at the end of January with tariff fears, a weaker dollar and softer bond yields all contributing. Chinese gold market activity stayed true to its typical seasonal January strength and analysis suggests positive follow-through into February.

Gold gave back less than expected due to a strong dollar and profit-taking, as a positive outlook and higher risk constrained outflows.

Gold is poised for its best annual performance in more than a decade – up 28% through November. Behind this, central bank and investor buying have more than offset a notable deceleration in consumer demand.

While gold’s contribution to managing portfolio risk is well established, its contribution to portfolio return is not. Our analysis shows that gold responds to both an economic and a financial component. And that its long-term return is not only well above inflation but more closely linked to GDP than previously understood.

August has typically been kind to gold, but seasonal winds are up against strong cross currents, that on balance look much more supportive than not.

Gold has performed remarkably well in 2024, rising by 12% y-t-d and outperforming other major asset classes. As we look ahead, the key question remains: will gold’s momentum continue or is it running out of steam?

While gold investments have been gaining popularity among Japanese households, both life, and property and casualty (P&C) insurers have made limited gold investments, despite the sheer size of the Japanese insurance market in terms of premiums and assets.

In January, gold gave back gains after hitting an all-time high at the close of 2023. Looking forward, hot US growth data may delay lower rates, but politics and geopolitics will likely maintain interest in gold.