The gold market suffered due to the aggressive monetary policy of the Fed, which led to higher bond yields and the American currency index. However, the French bank Société Générale believes that it is better not to sell gold from its portfolio against the background of current conditions, given the high level of instability.
Analysts of the bank noted that they were not going to sell gold, although at the same time they reduced the volume of investments in other commodities. The fact is that the yellow metal is a protective asset that will soon be needed, because central banks are pushing the global economy into a state of recession.
The bullish outlook for gold came as the precious metal fell to a two-year low of about $1,675 an ounce. The bank believes that an increase in the real yield of the "treasurer" could bring precious metal quotes to $1,550 per ounce by the third quarter of next year.
The bank's latest report said the following about gold: "In the short term, the yellow metal may continue to move down due to an increase in the real yield of" treasurers "amid an increase in Fed interest rates. However, given the approaching recession and the rising inflation rate, gold looks like a very attractive defensive asset. "