Having spiked at an all-time high of $5,586.20 on Jan. 29, bullion has since plunged as investors turn negative on the non-yielding asset’s prospects in a potentially higher rate environment.<\/p>\n
About 16% was wiped off gold in the three-month period ended June 30 \u2014 its worst quarter since the second quarter of 2013. Gold has fallen 7.76% year-to-date.<\/p>\n
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Gold futures.<\/p>\n
Despite the slide, gold \u2014 traditionally a safe haven asset in times of turmoil \u2014 still has a key role to play in investors’ portfolios as traditional correlations break down, according to Amundi Investment Institute.<\/p>\n
In its mid-year Global Investment Outlook, Amundi said the more challenging monetary policy backdrop \u2014 coupled with high public debt trajectories and central banks’ diversification away from dollar-based assets \u2014 should help support demand for gold and precious metals in the second half.<\/p>\n
“Investors face a world in which the independence of central banks is being tested, inflation is more volatile, and concentration risks are growing,” said Monica Defend, head of Amundi Investment Institute. <\/p>\n
“The best portfolios for this new regime can withstand different scenarios: they need to be diversified across currencies, invested in real assets and gold, and explore equity sectors and structural themes with discipline.”<\/p>\n
The World Gold Council’s recent annual Central Bank Gold Reserves survey found that more global central banks are poised to increase their gold reserves<\/a> over the next year.<\/p>\n Silver was also lower Wednesday as the sell-off spread to other precious metals. <\/p>\n Silver futures<\/a> were last seen 3.34% lower at $57.49, and spot silver<\/a> had shed 1.31% early Wednesday, trading at $57.80. <\/p>\n