"Don't buy euros, don't touch yen," says Amundi, a European asset management giant: Amid de-dollarization, gold is the most practical alternative.
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Amundi, the largest asset management company in Europe, stated that as the dominance of the US dollar is being shaken, investors are accelerating their reduction of dollar assets and turning to gold. Gold, as the most realistic alternative in the current market environment, still has room for further price increases.
On the 27th, Amundi’s Chief Investment Officer Vincent Mortier pointed out in an interview with Bloomberg TV that in addition to geopolitical factors, the huge US deficit and the uncertainty of the Federal Reserve’s future policies are also key drivers for the large-scale flow of funds from the dollar to gold. The company believes that in the long run, gold is an effective tool for resisting currency depreciation and maintaining purchasing power.
Mortier especially emphasized that in the current global foreign exchange landscape, no other major currency can effectively replace the dollar. He bluntly said that investors now “may not want to buy euros, while the yen is under pressure”; against this backdrop, gold has become the only alternative, a trend that has become particularly evident in his clients’ asset allocations.
Driven by this demand for safe havens and asset transfers, gold prices rose for the seventh consecutive trading day on Tuesday, after breaking through the historical high of $5,100 per ounce for the first time ever on Monday. Market data shows that in the past 12 months, the price of gold has soared by 85%, while the Bloomberg Dollar Index has fallen by 8.5% over the same period.
Active Defense of Institutional Funds
According to Bloomberg, Amundi, which manages about 2.3 trillion euros (approximately $2.7 trillion) in assets, revealed that this large-scale "migration" from dollar assets to gold is mainly led by institutional investors.
Mortier said that most of the current demand for gold comes from institutional investors such as central banks and sovereign wealth funds. He pointed out:
“We have been allocating gold for the past two and a half years, and I believe this trend will continue.”
In his view, in the current macro environment, allocating gold is not just a tactical adjustment, but also a way to resist the risk of asset depreciation over the long term.
Geopolitical Tensions Intensify Dollar Asset Outflows
Beyond economic fundamentals, geopolitical tensions are also accelerating investors’ flight from the dollar. Mortier warned that Trump’s continued criticism of traditional allies, including recent disputes with European countries over Greenland and ongoing tariff threats, will come at a cost.
“You can’t keep bullying your allies like this forever,” Mortier said:
“New alliances are beginning to form. Europe’s moves on the Greenland issue are very interesting, which shows that under pressure, all sides can find new forms of countermeasures.”
It is reported that Canadian Prime Minister Mark Carney also sent a similar signal last week at the World Economic Forum in Davos, Switzerland. He bluntly called for middle powers to act together and warned against coercion by great powers. Amundi believes that this increasingly isolated position of the United States is convincing many investors to reduce their holdings of dollar assets and turn to gold.
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