There is still a case to hold gold as a strategic asset – Aberdeen Standard Investments

Speculative interest in gold may have run its course, but investors shouldn’t completely disregard the precious metal even as record equity markets hog all the limelight, according to one market expert.

Steve Dunn, head of exchange-traded products at Aberdeen Standard Investments, said in a telephone interview with Kitco News that although investors are taking some profits in gold after the summer’s unprecedented rally, there is still a case for gold as part of a strategic allocation within a portfolio.

Dunn added that he sees a solid floor in gold with prices hovering between $1,450 and $1,500 an ounce for the rest of the year.

“Money is flowing back into equity markets, but it’s a really good market that nobody likes,” he said. “Investors are still concerned and desperate to protect their capital.”

The comments come as Aberdeen reported its strongest month of inflows into its suite of exchange-traded products, totaling 149 million. The firm’s gold ETF (NYSE: SGOL) saw inflows of $95 million, representing nearly 64% of inflows last month.

“Although gold continues to shine, we saw broad-based interest in all precious metals,” he said. “However, it appears that the precious metals market has run out of bullish news and we need to wait for new information.”

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