To The Moon

Europe's largest asset management company, Amundi SA, stated that as the rift between the United States and other nations deepens, numerous investors are reducing their holdings of dollar-denominated assets and turning to gold, which will continue to support stronger gold prices. The firm's Chief Investment Officer, Vincent Mortier, stated in an interview that the massive US fiscal deficit, coupled with market uncertainty regarding the Federal Reserve's future monetary policy, is further driving the shift of funds from the US dollar to gold. He remarked, "For the past two and a half years, we have consistently allocated to gold assets, and I believe this strategy can continue. From a long-term perspective, gold is an excellent tool for hedging against currency depreciation and an effective way to preserve purchasing power." On Tuesday, the gold price extended its rally to a seventh consecutive day, having previously breached the $5,000 per ounce mark for the first time on Monday. Over the past 12 months, the international gold price has surged by 85%, while the US Dollar Index has fallen by 8.5% over the same period. Mortier pointed out that current gold demand primarily comes from institutional investors such as central banks and sovereign wealth funds. According to data on Amundi's official website, the firm manages assets worth approximately 2.3 trillion euros (equivalent to 2.7 trillion US dollars). Mortier believes that the Trump administration's continuous pressure on traditional allies—including recent disputes with European countries over Greenland, along with the persistent brandishing of tariff threats—will ultimately exact a cost. "It is impossible to keep bullying your allies forever," he said, "New alliances are gradually forming. Europe's stance on the Greenland issue is quite telling, indicating that under external pressure, parties are exploring new ways to counter." Canadian Prime Minister Mark Carney explicitly called for middle powers to coordinate actions and warned against the coercive behavior of major powers during last week's World Economic Forum in Davos, Switzerland. Mortier stated that there is currently insufficient justification to allocate to other major currency assets. "At present, investors may be reluctant to buy the euro, while the yen is under pressure, making gold the optimal alternative choice," he commented, "We can clearly see this trend from our clients' allocation behavior as well."