'The best time to buy insurance is when you don't need it': Managers increase gold weightings as 'double hedge'

Longest streak of gains since 2011

Managers are backing gold as their safe haven of choice at the start of 2018 as a way of protecting portfolios from event risk and rising inflation expectations, which could pose a threat to the bull run for equity markets.

Gold kicked off 2018 with its longest streak of gains since 2011, rising for eight consecutive days to $1,316 an ounce by 2 January. This was its highest level since 15 September, which was seen at the height of tensions between the US and North Korea.  It came after the precious metal enjoyed its best annual performance for seven years in 2017, with prices climbing 14% as the US dollar fell 10%. Gold was trading at $1,327 as at 11 January, although it is well off highs of $1,900 seen in 2011. Protecting investments Rory McPherson, head of investment strategy at Psigma Investm...