We trimmed a position in gold.

Background: 

We recently trimmed our active allocation to gold. While we continue to believe gold presents an interesting active opportunity, we are taking profits after the recent surge in price that occurred after we added to the position in early September. Regardless of recent frothiness in the gold market, we believe that structural drivers remain, which include:

• Ongoing central bank purchases 
• Continued net inflows to gold ETFs 
• Increased hedging demand in the face of global trade and recession risks 

These factors were heightened at the time by the emergence of a general de-dollarization—or at least a weaker U.S. dollar—theme. We believe the most recent leg of appreciation in the gold price may not be entirely explained by fundamentals but could rather be principally driven by retail flows suggesting an element of FOMO (fear of missing out). For this reason, we have decided to take profits on our gold position.
 

Important information

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the portfolios or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts. There is no assurance as of the date of this material that the securities mentioned remain in or out of SEI portfolios. 

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