Lombard Odier: Gold breakout highlights attractive portfolio diversification properties

Global wealth and asset manager, Lombard Odier, said gold has surged to record highs and expects prices to stay supported through 2025, highlighting its diversification benefits while keeping allocations neutral.

Lombard Odier's latest CIO Office Viewpoint discussed the outlook for gold following record-high prices in recent weeks. The report features insights from its Global FX strategist, Kiran Kowshik, and its head of investment strategy, Luca Bindelli.

After trading in a $3,250-3,450/oz range for the past four months, the gold price has hit a new record high in recent weeks. Lombard Odier sees prices being supported for the remainder of 2025.

Gold prices have set new records amid a narrative of increasing market risks, including inflationary concerns, rising government debt and slowing US growth.
Investor positioning has also lightened up after May, and increased demand amid still constrained supply should add to upward pressure on prices.

The move could extend towards $3,600-3,800 per ounce over the coming months. Lombard Odier raises its 12-month target to 3,900 USD/oz.

Gold retains its diversification properties in multi-asset portfolios, and Lombard Odier is keeping its allocations at neutral levels versus its strategic benchmark for now.

Re-disseminated by  Wealth & Society