①Mark Mobius, a seasoned American investor known as the "Father of Emerging Markets," recently stated that gold is no longer attractive after experiencing a historic rally; ②He noted that he might consider purchasing the metal if its price falls 20% from current levels; ③He also mentioned that the rise in China's stock market appears sustainable due to the progress China has made in the technology sector.
Mark Mobius, a veteran American investor renowned as the "Father of Emerging Markets," recently stated that gold is no longer attractive after experiencing a historic rally. He warned that a potential rebound in the US dollar, while most market participants remain firmly bullish on gold, could weaken the performance of precious metals.
"At the current price level, I definitely wouldn't buy, that's for sure," Mobius said in an interview on Friday, adding that he might consider buying the metal if its price drops 20% from current levels.
He added that market forecasts suggest an improvement in the US economy, which may strengthen the US dollar from current levels, and this movement could reduce the appeal of precious metals.
Mobius made these cautious remarks against the backdrop of gold having just experienced its best year since 1979, driven by central banks' large-scale gold purchases, declining interest rates, and the "currency devaluation trade" (where investors moved away from government bonds and currencies due to concerns over rising debt levels), which fueled investor demand.
For many investors, the outlook for gold remains positive as most factors driving last year's price increase are still intact.
On Friday, international gold prices retreated slightly. COMEX gold futures fell 0.49%, closing at $4,601 per ounce. Investors took profits after gold prices hit record highs recently, and signs of easing geopolitical tensions also diminished gold's safe-haven appeal. Additionally, cooling expectations of Federal Reserve rate cuts further pressured gold prices.
According to CCTV News, US President Trump stated at the White House on January 16th that he had "convinced himself" to delay military action against Iran.
Moreover, Trump praised economic advisor Kevin Hassett during a White House event on Friday and hinted that he would like him to continue serving as Chairman of the National Economic Council rather than becoming the Federal Reserve Chair. Following Trump’s remarks, market bets on Federal Reserve rate cuts cooled, as the highly dovish Hassett had been considered the leading candidate for the Federal Reserve Chair position.
The rise in China's stock market appears sustainable.
Moreover, Mark Mobius stated that for global investors, China, India, South Korea, and Taiwan, China are the most attractive stock markets in the region.
He also noted that the rise in China's stock market appears to be sustainable due to the progress made in the technology sector.
"China’s current goal is to catch up with the United States in areas such as high-end chips and various artificial intelligence technologies," said Mobius, who has nearly three decades of experience in emerging market investments. "Capital is flowing into these sectors rather than consumer-focused areas."
He remains optimistic about India's stock market, citing increased government spending and investment, particularly in the technology sector.
Editor/KOKO
