BlackRock advises investors to keep modest gold allocation despite short‑term pressures

BlackRock’s Global Allocation Strategy portfolio manager Russ Koesterich said gold remains a strategic long‑term asset even though its price has fallen about 25 % from the January peak and roughly 7 % over the year. He attributed the correction to a stronger US dollar, rising real‑yield Treasury rates and a shift of investor capital toward artificial‑intelligence‑focused equities. Koesterich warned that “gold has become an asset that adds risk to portfolios rather than protecting against downward risks,” yet he still recommends a modest gold exposure to diversify against high sovereign debt, budget deficits, currency depreciation and ongoing geopolitical uncertainty.

The manager emphasized that despite short‑term headwinds, gold’s role in diversified portfolios should be maintained at a modest level.