A Saxo Bank A/S report noted, “The market looks increasingly in need of consolidation, but at this point, a deep one is needed to rattle hedge funds holding the largest bet on higher prices since 2020.”
Gold’s 27 percent rise this year has also been supported by strong central bank buying and safe-haven demand, particularly amid ongoing conflicts in the Middle East and Ukraine.
Michael Cuggino, president of Permanent Portfolio Family of Funds, believes these bullish factors will continue to push gold prices higher in the long term, even if some near-term price fluctuations occur.
His firm’s Permanent Portfolio fund is currently above its 20 percent target allocation in gold, and they are “not changing our allocation at this time.”
By 2:54 pm in New York, spot gold was up 0.2 percent, trading at US$2,626.99 per ounce. Meanwhile, the Bloomberg Dollar Spot Index remained largely unchanged, and the US 10-year Treasury yield dipped slightly. Palladium, platinum, and silver saw declines.