And why wouldn’t they! With China stuffed forever and the USD driven by an unfolding productivity megaboom, the outlook for dirt is terrible.
Total commodity investor AUM in February dragged out the weakly weak start to 2024 seen in January and leaves the commodity investor space once again facing a balancing act. Perhaps an even less weak month should be welcome, but a roughly equal split in net notional declines between index AUM (down by -$5.8bln) and exchange traded products (down by -$5.0bln) doesn’t point to pockets of strength in our view. This left total AUM at $525.8bln overall in February, the lowest level since late 2020, and still set up for quite the balancing act this year in our view.
While gold prices may remain supported within recent ranges, we are still awaiting interest among investors to turn the tide in terms of allocations.
