Gold Rally Poised to Continue Amid Dollar Outflows, According to Amundi

Gold’s Upward Momentum Continues as Investors Turn Away from the Dollar

According to Amundi SA, gold is poised to maintain its upward trajectory as more investors move away from US dollar assets, prompted by growing US isolation on the global stage.

Vincent Mortier, Chief Investment Officer at Amundi, Europe’s largest asset manager, explained in a Bloomberg Television interview that the shift toward gold is also being fueled by the United States’ expanding fiscal deficits and uncertainty surrounding the Federal Reserve’s future actions.

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“We have been investing in gold for the past two and a half years, and I believe this trend will persist. Over the long run, gold serves as a strong safeguard against currency devaluation and helps preserve purchasing power,” Mortier stated.

On Tuesday, gold extended its winning streak to seven consecutive days, having surpassed $5,000 per ounce for the first time on Monday. Over the last year, gold prices have soared by 85%, while Bloomberg’s dollar index has dropped by 8.5%.

Mortier noted that much of the recent demand for gold is coming from institutional players, including central banks and sovereign wealth funds. Amundi, according to its website, manages approximately €2.3 trillion ($2.7 trillion) in assets.

He also commented that President Trump’s confrontational approach toward traditional allies—highlighted by recent disputes with European countries over Greenland and ongoing tariff threats—will have repercussions.

“You can’t continue to strong-arm your allies indefinitely,” Mortier remarked. “We’re witnessing the formation of new alliances. Europe’s stance on Greenland is particularly noteworthy, demonstrating that pressure can lead to innovative forms of resistance.”

Last week, Canadian Prime Minister Mark Carney urged middle-power countries to collaborate, delivering a pointed message at the World Economic Forum in Davos that cautioned against domination by major powers.

Mortier added that there are currently few attractive alternatives among major currencies. “At this moment, buying euros may not be appealing, the renminbi could be premature, and the yen is under strain—so gold stands out as the preferred option. Many of our clients are making this choice,” he said.

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