Why Big Asset Managers Are Rebuilding Gold Positions After the Selloff

Gold’s pullback has not persuaded every large investor to abandon the metal. Amundi, Pictet Asset Management, Robeco Institutional Asset Management and Fidelity International have rebuilt positions that were reduced earlier in the year, betting that gold’s longer-term hedging role will endure despite restrictive US monetary policy. 1

The investment case: buying the drawdown, not chasing the peak

Gold reached a record near $5,600 an ounce in January before retreating. Amundi has bought bullion on the expectation that it will return to $5,000 by year-end. That target remains below the January high, but it signals that the firm sees the correction as an opportunity rather than a break in the broader case for holding gold. 1

The managers’ thesis is fundamentally about diversification and resilience. The reported drivers include persistent inflation concerns, central-bank demand, fiscal deficits, geopolitical uncertainty and the possibility of reduced reliance on the US dollar. In that framing, gold is not primarily an income-producing asset; it is portfolio insurance for scenarios in which policy, sovereign-debt or currency risks become more important. 1 5

Robeco portfolio manager Arnout van Rijn described gold as a more widely accepted portfolio holding, rather than a specialist allocation. 8

Why a hawkish Fed has not ended the bullish view

A hawkish Federal Reserve and elevated real yields are ordinarily difficult conditions for gold. Because bullion pays no coupon, higher real yields increase the opportunity cost of holding it. Further rate-hike expectations and a stronger dollar could therefore renew pressure on prices.

The buyers rebuilding exposure appear to believe much of that headwind has already been reflected in the drawdown from the record. Their view is not that rates no longer matter. It is that the structural reasons to own gold may outweigh those cyclical pressures over a longer investment horizon. 1 5

Fidelity’s recent activity illustrates this distinction. A Fidelity International portfolio manager doubled a fund’s gold allocation over three weeks to a self-imposed 5% limit, citing uncertainty over Fed policy. The manager also said a weakening of the dollar’s safe-haven role could justify considering a higher cap. 2

What Amundi’s $5,000 target does—and does not—say

Amundi’s reported $5,000-per-ounce year-end expectation is a specific institutional target, not a market consensus or a guarantee. 1

It reflects a judgment that the forces supporting strategic gold ownership can persist even if policy remains restrictive. It does not remove the near-term risks from changes in rate expectations, real yields, the dollar or investor positioning. Investors should distinguish between a strategic allocation case and a short-term price forecast: the two can point in the same direction without moving on the same timetable.

What renewed gold demand could mean for miners

Gold-mining equities generally have operating leverage to bullion. If the realized price received for gold rises while mining and sustaining costs stay comparatively stable, the additional revenue per ounce can translate into larger margins and cash flow. A falling gold price can have the opposite effect.

That relationship is real but imperfect. Mine output, grades, recoveries, energy and labor costs, capital spending, hedging, financing and political conditions can all matter as much as the metal price in a given period.

Eldorado Gold: price support meets cost and delivery discipline

Eldorado Gold reported second-quarter 2026 gold sales of 102,691 ounces at an average realized price of $4,379 per ounce. The company maintained guidance excluding its Skouries and McIlvenna Bay projects for production, cash costs and all-in sustaining costs. 13

A sustained rise in bullion would be supportive for its revenue per ounce, but the investment outcome still depends on keeping costs controlled and delivering projects and production plans.

Pan American Silver: exposure to two metals and execution

Pan American Silver’s economics are shaped by both gold and silver. The company said it expected full-year 2026 gold production at the low end of its 700,000-to-750,000-ounce guidance range, while gold-segment all-in sustaining costs were expected toward the high end of guidance because of production impacts. 8

That makes the shares sensitive not only to gold’s direction, but also to silver prices and the company’s ability to meet production and cost expectations.

Aura Minerals: higher growth potential, higher company-specific risk

Aura Minerals has reported growth in output and revenue alongside meaningful exposure to gold prices. Its results also show why miners should be assessed as operating businesses, not simply proxies for bullion: production execution and the effect of gold hedges can materially shape reported performance. 17

The risk case for gold buyers

The same factors that make gold a hedge can make it volatile. A stronger dollar, higher real yields or a further hawkish shift in Fed expectations could make non-yielding bullion less attractive in the short run. 1

Technical levels cited in market commentary should be treated as risk-management reference points, not economic forecasts. They can help describe where traders are focused, but they do not establish gold’s fundamental value or ensure that a support or resistance level will hold.

Bottom line

Large managers are rebuilding gold exposure because they see the selloff as a chance to restore portfolio insurance against inflation, fiscal stress, geopolitical shocks and uncertainty around the dollar—not because they expect a hawkish Fed to be irrelevant. Amundi’s $5,000 year-end target captures that constructive view. 1

For investors considering miners, renewed institutional demand for bullion is potentially supportive, but it is only one input. Gold’s direction matters, while costs, output, hedging, capital discipline and jurisdictional risk determine how much of a bullion move reaches a mining company’s bottom line.