Gold Falls 25% From January Peak, BlackRock Still Recommends Modest Holdings

According to Kitco News, Russ Koesterich, portfolio manager at BlackRock Global Allocation Strategy, said investors should maintain modest exposure to gold despite recent weakness. Spot gold last traded at $4,074.70 an ounce, down approximately 25% from its all-time high in January and down 7% year-to-date.

Koesterich attributed gold's decline primarily to renewed U.S. dollar strength—the Dollar Index rose over 6% since early January—and rising real interest rates, with 10-year TIPS yields climbing from 1.65% in March to 2.20%. He noted that despite these headwinds, the structural case for holding gold remains intact due to historically high debt levels, ongoing debasement risks, and geopolitical uncertainties.