Fidelity Fund Increases Gold Holdings, Betting on Fed Credit Crisis and Dollar Safe-Haven Decline

BlockBeats News, August 24th. A portfolio manager at Fidelity International said that in the past three weeks, the gold holdings in the fund he manages have doubled. He attributed this move to increased uncertainty over the Fed's policy.

After increasing the fund's gold allocation to his self-imposed 5% limit, George Efstathopoulos stated that if the US dollar's safe-haven status continues to decline, he will consider raising this allocation further. Following the Fed's July meeting, where investors sold off long-term treasuries, George also began increasing his gold holdings against this backdrop.

“My understanding is that this is due to the Fed's lack of credibility and the escalating policy uncertainty,” George said. He also mentioned that the US Treasury unexpectedly intensified its long-term bond repurchases, which seems more like “manipulating yields rather than addressing the root cause of the yield increase.” “Today, the focus of gold is no longer on the rise in yields per se, but on why yields are rising.”