Investors in Hong Kong and Singapore are looking for quality and safe-haven assets to drive long-term capital growth over the coming months, according to an AsianInvestor poll.
The sustained pace of central bank purchases is unexpected and the trend could continue in the months ahead amid growing geopolitical tensions and a clouded economic outlook, said experts.
The central bank's physical holdings of the precious metal have climbed by close to 50% in the first seven months of the year. Yet gold's share in the reserves portfolio remains small.
The first six months of 2023 was eventful for asset owners. Bonds became the asset class of choice, gold came back on asset owners' radars, and family offices were the target of incentives from both Singapore and Hong Kong.
Inflation, banking crisis, and a weakening US dollar are putting gold under the spotlight. AsianInvestor asks asset managers if gold prices have hit a peak or if there is more room for prices to rise.
The AsianInvestor news team was very busy in March, covering big stories such as the UBS-Credit Suisse merger impact, as well as speaking to asset owners at our own events.
G7 leaders have committed to indefinite support for Ukraine in its defence against Russia’s invasion in addition to a fresh round of sanctions on Russian oil and gold.
Some analysts remain bearish on gold, believing that energy, industrial metals or real estate would be a better hedge, while others think the metal is now trading at an attractive rate.
Gold, commodities and real estate are among the asset classes that investors should consider as hedges against inflation, but knowing when to get out is key.
Investors in Asia Pacific will likely see the low interest rate environment as an opportunity to add risk assets in the hope that the economic recovery is on the immediate horizon, but the case for owning gold in portfolios remains strong, according to Jaspar Crawley, Head of Distribution, APAC, at The World Gold Council.