Alexandra Symeonidi: «Gold Gains Importance as Risks Persist»
Even as speculative enthusiasm moderates, gold’s hedge properties, central-bank-backed demand, and diversification benefits are helping secure its place as a core allocation within institutional portfolios, says Alexandra Symeonidi, analyst at William Blair’s emerging markets debt team.
Portfolio diversification needs and structural central bank purchases continue to reinforce gold’s long-term store-of-value credentials. Holdings in exchange-traded funds ETFs) have expanded at double-digit rates this year, underlining accelerating institutional interest.
Although futures positioning remains above long-term norms, it is still well below recent speculative peaks following an earlier price surge, according to Alexandra Symeonidi. She is a senior corporate credit and sustainability analyst at William Blair’s emerging markets debt team.
Inflation Resilience Sustains Hedge Appeal
«Gold remains a preferred hedge in a macro environment marked by elevated geopolitical risks and inflation that continues to exceed central bank targets,» she adds and notes that entering a US Federal Reserve rate-cutting cycle further «strengthens the case for gold as a store of value», supporting ongoing diversification demand.
Despite strong price performance, gold mining equities still trade at relatively low valuations compared with earnings, suggesting profitability improvements are not fully priced in. While late-year tactical inflows may cool, fundamental drivers remain in place for long-term investors.
Multiple Pathways to Exposure
ETFs remain the vehicle of choice for direct exposure, while derivatives and miners’ equity or credit instruments offer alternative strategies. William Blair’s analyst expresses gold exposure via credits in producing countries and companies, aligning positions with fundamental balance-sheet analysis.
Macro Dynamics With Caveats
Sticky inflation during the monetary easing cycle could spur additional institutional buying, especially as emerging markets maintain relatively low gold reserve allocations and fiscal pressures rise in major developed economies.
Still, Symeonidi cautions that a stronger risk-on rotation could «challenge gold’s rally» if sentiment shifts decisively toward higher-beta assets.
