WGC maintains positive for full-year estimate
The US dollar’s fate remains key for gold investment! In the recently published, Q3 2025- Gold Demand Trends by World Gold Council [WGC] presented the Outlook for gold Investment 2025. According to the Outlook, the fate of the US dollar remains key for investment decisions, under headlines such as, debasement and de-dollarisation. There is some disagreement about how readily these apply; our view is that the reality is more subtle. A weaker dollar during the first nine months of 2025 is largely pinned on hedging activity. US assets may have lost some of their exceptionalism but they remain core to most global portfolios. Hedging will just put the onus on them working a little harder for investors, and a marginal shift into less crowded assets is prudent portfolio management. Anticipated US policy rate cuts are another key pillar for investors. While the opportunity cost motive remains important, the potential consequences of lower rat...