While we observed some outflows in the market in the recent period, investors are still showing faith in the yellow metal. Historically, gold has been used to provide protection against potential tail risks during times of market stress as it has tended to rise during stock market falls. As such, it may be able to help preserve capital during times of geopolitical stress. In the near term, gold may be an interesting diversifier when the upward pressure on rates fades, as well as considering it might be in demand from central banks as a reserve for value. |