According to a recent Citi Research report, asset managers overseeing over $20 trillion in assets have increased their gold allocations, marking a significant shift in global asset allocation strategies. The report highlights that gold has regained its status as a consensus overweight position among managers, alongside long positions in U.S. equities and the U.S. dollar. "The precious metal (Gold) overweight was built back up to a consensus trade," Citi analysts note, reflecting a broader trend of reallocating from European equities to more stable assets like gold.
This strategic pivot comes amid mixed equity performances, with Japan and China outperforming while the U.S. and Latin America lagged in December. The report also indicates a continued preference for U.S. equities, small-caps, and high-yield European credit, while maintaining underweights in Japanese government bonds and U.S. investment-grade credit. As geopolitical risks and market volatility persist, gold's appeal as a safe-haven asset appears to be strengthening, aligning with the consensus views of major asset managers.