Key Takeaways:
Gold has failed to sustain gains above $4,100 an ounce, exposing near-term downside risks, though BlackRock Inc.'s Russ Koesterich continues to recommend investors maintain a modest allocation to the precious metal.
"Investors should still hold a modest amount of gold," Koesterich, a Managing Director at BlackRock, said in a July 24 note. The firm manages more than $10 trillion in assets, making it the world's largest asset manager.
Gold's inability to hold above $4,100 highlights the headwinds facing the metal in the current environment. The level has acted as a resistance zone, with each test met by selling pressure that has capped upside momentum.
The recommendation from a senior BlackRock executive may help underpin institutional demand for gold as a portfolio diversifier. With the metal testing key resistance at $4,100, investors are watching for the next catalyst that could determine whether gold breaks higher or retreats toward lower support levels.
This article is for informational purposes only and does not constitute investment advice.
