Gold has been used to provide protection against potential tail risks during times of market stress as it provides some stability. 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 in times of high inflation and low growth when upward pressures on real rates fade, as well as reflecting potential demand from central banks as a reserve for value.
When nearing the potential Fed pivot (at some point in Q2), the focus should fall on slowing growth. In these circumstances, gold would be in demand, with valuation and positioning providing attractive entry points.
AMUNDI PHYSICAL GOLD ETC | 0.12% TER**
LYXOR NYSE ARCA GOLD BUGS (DR) UCITS ETF | 0.65% OGC*
* Ongoing charges - annual, all taxes included. The ongoing charges represent the charges taken from the fund over a year. Until the fund has closed its accounts for the first time, the ongoing charges are estimated. Transaction cost and commissions may occur when trading ETFs.
** The TER is a measure that compares the annual total management and operating costs (all taxes included) charged to an ETC against the value of that ETC’s assets. Transaction cost and commissions may occur when trading ETCs.