As investors seek stability amid these tensions, many are turning to gold as a safer investment option. The survey revealed that 53% of respondents are looking to increase their gold reserves in the next two years. Central bankers are likewise finding gold increasingly appealing due to the prevailing geopolitical instability, with 56% indicating a preference for the precious metal. This year alone, gold prices surged by 13%, reaching a record high of $2,435 per ounce in May. Analysts predict that prices may rise further, with some expectations hitting $2,600 per ounce within a year.
Furthermore, the geopolitical climate has led sovereign investors to increase their focus on emerging markets. Over half of the respondents, 54%, anticipate these markets will thrive amid global tensions. With 67% believing that emerging markets will outperform developed ones in the next three years, there is growing interest in countries like India and Brazil as safer options for investment. Specifically, there has been a marked increase in interest in Indian debt, with 88% of investors wanting to boost their exposure. Additionally, opportunities in the realm of private credit and green energy have emerged as attractive alternatives, with 63% of investors seeing private credit as a diversification strategy, and 30% of sovereign investors making renewables a priority for allocation.
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