Gold Rises Around 1% On COMEX

Published on Dec 16, 2021 17:53

COMEX Gold futures continued to edge up after testing around two month low in last session. The World Gold Council (WGC) has noted that global portfolio composition continues to shift with larger allocations to alternatives. Many of these alternative investments have previously helped portfolio performance but are less liquid than traditional investments. The hunt for yield in a low-rate environment has also encouraged riskier fixed income investments. Increased alternative and lower quality fixed income exposure could prompt a more volatile and less liquid portfolio. The shift to risker and less liquid assets strengthens the case for an allocation to gold, given its unique combination as a highly liquid diversifier, that can reduce portfolio volatility. COMEX Gold futures are currently trading up 1% at $1784 per ounce.