Latest news with #JuliusBaer
Reuters
4 days ago
- Business
- Reuters
Gold price to stay above $3,000/oz as flight to safety endures: Reuters poll
July 28 (Reuters) - Global trade and fiscal debt concerns are feeding into a flight to safer assets, sharpening gold's edge as a haven from risk, prompting analysts in a Reuters poll to sharply raise their forecasts. The poll of 40 analysts and traders returned a median forecast of $3,220 per troy ounce of gold for this year, up from $3,065 predicted in a poll three months ago. The 2026 estimate rose to $3,400 from $3,000. Spot gold prices are up 27% so far this year after hitting a record $3,500 per ounce in April with the U.S. and China in the midst of a full-blown trade war, triggering regular forays into safe-haven assets. "The first half of 2025 confirmed what many of us have long believed. Gold is not just a hedge. It is a signal," said David Russell at GoldCore, calling $4,000 a realistic target by end-2026 should worries about the U.S. fiscal situation deepen further. Uncertainty over looming trade deadlines with key U.S. partners has bolstered safe-haven gold's appeal, while fiscal concerns got inflated by the passage of Trump's "One Big Beautiful Bill," which nonpartisan analysts expect to add $3.3 trillion to the national debt. Gold has yet to reclaim April's record highs, and "the short-term consolidation is set to continue as the market misses an imminent trigger to restart the rally," said Carsten Menke, an analyst at Julius Baer. Most analysts believe that central banks remain the bedrock of gold's rally, driven by the long-term diversification of reserves away from dollar dominance. China has added to its reserves for eight months consecutively, while an ECB survey showed nearly two-fifths of central banks cite geopolitical risk as a reason to hold gold. "The multipolar world persists and with it the central banks' desire to be less dependent on the U.S. dollar as a reserve currency and - in an extreme case - less susceptible to U.S. sanctions," Menke said. Silver has surged 32% so far this year, outperforming gold and nearing the key $40 mark for the first time in fourteen years. Analysts lifted their 2025 silver price forecast to $34.52 from $33.10 in the previous poll, aided by worries about U.S. tariff policy, signs of tightness in the spot market and growing investor interest in alternatives to gold. The average 2026 silver price forecast was raised to $38 per ounce from $34.58. Much of the recent surge came from inflows into exchange-traded products, and if that momentum slows, silver could become vulnerable despite expectations of another market deficit this year, said Standard Chartered analyst Suki Cooper.
Gulf Insider
4 days ago
- Business
- Gulf Insider
Shaj Babu: Preserving Wealth Across Generations
Shaj Babu, CEO of Julius Baer Bahrain, reflects on the wealth management firm being on the cusp of marking 50 years of presence in the Kingdom. In this exclusive interview, we learn about how Julius Baer witnesses shifting client preferences as the younger generation looks to alternative forms of wealth management. Now in its third edition, Business Leaders in the Middle East brings together sharp insights from across the region. These aren't mere interviews; they're windows into how leadership is evolving in a world shaped by rapid digital transformation. Technology touches nearly every industry now, and these leaders show us how to navigate change with purpose. Julius Baer's expansion into Bahrain was initiated by the Group's acquisition of Merrill Lynch's International Wealth Management businesses in 2013. Since then, 95% of Merrill Lynch Bahrain's clients moved to Julius Baer in recognition of our values, heritage, and innovation. Next year, we will proudly celebrate 50 years of continuous presence in the Kingdom. This milestone not only showcases our long-term commitment to Bahrain but also reflects the deep trust we have built with clients in the region through our personalised advisory services. Julius Baer began as a family-owned business over 130 years ago and has since grown into a fully listed global entity. This history gives us a unique perspective on understanding the challenges families face when managing and preserving wealth across generations. Our identity as a pure-play wealth manager sets us apart. It allows us to focus exclusively on our clients' best interests without the distractions of other business lines. In a region like the Middle East, where much of our clients' wealth is often generational, and where financial legacy forms the lifeblood of both family and national economies, that focus matters more than ever. Bahrain is a prime example. Our 50-year presence in the Kingdom is a testament to our commitment, consistency and ability to grow with our clients. Clients in Bahrain are increasingly looking for long-term solutions to help them navigate the complexities of transferring wealth across generations. Our role is to guide families through this journey, to help them secure amore stable and sustainable financial future through a smooth handover of their wealth to the next generation. We also see strong interest from clients in the region for Shariah-compliant products. At Julius Baer, we have enhanced our Islamic finance offering to include a range of 3rd party solutions, including Sukuks, Islamic funds and structured products, in addition to in-house products such as Commodity Murabaha Financing, to cater to their needs. The next generation represents conscious consumers and responsible investors, prioritising impact and values in their decision-making. We are seeing a shift in their investment preferences, with a rising interest in alternatives, digital assets, and thematic investment strategies to diversify their portfolios beyond traditional asset classes. It is our responsibility to bridge this generational shift in mindset between current and future generations with the right guidance and education. At Julius Baer, we believe that people remain at the heart of our business. Our clients value the trust, continuity, and personal connection we offer through personal advisory relationships. Technology does not replace that; it enhances it. Tools like AI and digital innovation help us serve clients faster, more effectively, and in ways that are tailored to their evolving preferences. These tools empower our advisors, but personal connection and empathy remain the core of what we do. Our team leverages cutting-edge financial tools such as Julius Baer's Digital Advisory Suite, which streamlines the investment process, and digital onboarding tools like video identification and e-signatures that make account opening seamless for clients. To me, focus means putting the client at the core of everything we do and never losing sight of that. Our values, our legacy and our drive towards innovation are all centred on one end goal, securing our clients' financial futures and being their trusted partners across generations. Being in Bahrain for the past 50 years has allowed us to leverage deep relationships and build enduring partnerships. Our team in Bahrainis fully aligned around this purpose: positioning Julius Baer as a trusted personal wealth advisor. While Bahrain is small in terms of market size, it has long served as a critical hub for business and financial services. That legacy remains strong today. In addition to serving clients locally, we extend our reach to clients domiciled in Saudi Arabia's Eastern province, Jeddah and Riyadh. Saudi Arabia, as we all know, is rapidly transforming into a new regional financial hub, and the opportunities it presents both in Bahrain and beyond are growing exponentially. So, success in Bahrain is not only defined by the opportunities presented in the country but also by business acquired beyond our borders. Professionally, success means establishing a bond of trust, building a reputation that extends beyond transactions, and positioning myself, the team and Julius Baer to remain as the wealth manager of choice for our clients. More Insights
The National
4 days ago
- Business
- The National
It's no surprise the future of private wealth is being shaped in the Gulf
Macro-economic shifts, new technologies and evolving perceptions of value are altering what high-net-worth individuals (HNWIs) – especially younger ones – look for in their portfolios and wealth managers. As established markets scramble to adapt to this reality, high-growth regions like the Gulf have an opportunity to capture a new wave of capital. This wave has already begun to descend on our shores, with cities like Abu Dhabi and Dubai among the most popular in the world for affluent individuals. A report this year by Henley and Partners shows Dubai now has more than 81,000 millionaires, 237 centimillionaires and 20 billionaires. Meanwhile, the Julius Baer Global Wealth and Lifestyle Report 2025 describes the emirate as a 'firm challenger' to the traditional bastions of wealth amid rising property prices. There are many reasons for the GCC's increasing popularity among HNWIs. Traditional pull factors like low taxation and high security are still powerful draws. But there is another undercurrent lifting the region's wealth management firms and it's linked to something money can't buy – an appetite for 'the new'. Indeed, the Gulf has become a region of early adopters with a youthful, tech-savvy population who embrace change. It is perhaps unsurprising then to know that HNWIs in the Middle East are more prepared than their global peers for wealth managers to use artificial intelligence – not only for processing functions but for making investment decisions. EY's 2025 Global Wealth report shows that 89 per cent of clients are already aware that their wealth managers may be using AI – more than any other region. In fact, 71 per cent in the region expect their wealth managers to use AI compared to 60 per cent globally. This state-of-readiness among clients is partly down to a society that is already using AI widely in daily life and work. Interestingly, trust in AI tends to be higher in high-growth markets, according to the Global Wealth report. Ultimately, trust is heavily dependent on how data is used and protected. GCC countries were among the first to establish ethical frameworks to govern data usage and enable financial companies to adopt AI. For instance, DIFC revised Data Protection Regulations in September 2023 – shortly after the global GenAI boom – with Regulation 10 specifically regulating autonomous systems. In doing so, the government instilled AI confidence in both wealth managers and clients early on. It's a similar story across the GCC with Boston Consulting Group's AI Maturity Matrix ranking both the UAE and Saudi Arabia as 'AI Contenders', reflecting their state-of-readiness to adopt AI on an advanced level. Meanwhile, Oman, Bahrain, Kuwait and Qatar are classified as 'AI Practitioners', indicating strong foundational progress towards AI-readiness. Aside from their confidence in AI-enabled investing, HNWIs in the Middle East are also more open to alternative investments. Sixty-eight per cent of clients in the region already use alternative products compared with just 51 per cent globally. But it's not just real estate, private equity and infrastructure that are attracting private capital in the Gulf. Cryptocurrencies are big business with many younger clients opting for digital assets. Globally, regulatory complexity has made crypto a problematic choice. But in the GCC, governments have brought clarity with their unambiguous stance on digital assets. In March, Abu Dhabi-based MGX invested $2 billion in Binance, the world's biggest crypto exchange, demonstrating the level of government backing for digital finance. And earlier, in 2022, Dubai launched the world's first regulator dedicated exclusively to virtual assets, the Virtual Assets Regulatory Authority. Crypto is just one of several emerging categories in a region where asset classes seem to crop up faster than anywhere else. The pace and scale of the GCC's economic transformations are producing unprecedented opportunities for wealthy individuals as entire new industries appear with the backing of some of the world's largest sovereign wealth funds. For instance, Oman is establishing itself as a logistics hub with significant investments in port infrastructure. Today, its logistics sector is worth about $6 billion; by 2040, it is targeting $93 billion. This is just one example of defensive investment opportunities springing up all over the region as governments create the conditions for renewables, health care, education and technology to thrive. The combination of these booming sectors and high-growth economies is a recipe for attracting investment. But when it comes to private wealth, the GCC has something few other regions have. It has highly agile and forward-looking regulatory environments and ultimately an investor base that is unafraid of disruption. Here, capital may be prudent, but it is also pioneering. And ultimately, this is the spirit in which the future of private wealth will be shaped.
Business Recorder
25-07-2025
- Business
- Business Recorder
Gold extends losses
NEW YORK: Gold prices extended losses on Thursday from the previous session as easing trade tensions increased risk sentiment and weighed on demand for safe-haven assets. Spot gold was down 0.7% at $3,362.48 per ounce by 1207 GMT, after shedding 1.3% in the previous session. US gold futures dropped 0.9% to $3,366.40. Following this week's trade deal between the US and Japan, two European diplomats said on Wednesday the European Union and the US are also edging toward a trade deal that could include a 15% US baseline tariff on EU goods and exemptions. 'Gold is down this morning due to the positive news flow around global trade... this is reducing downside risks for global growth and supports the prevailing risk-on mood in financial markets,' said Carsten Menke, an analyst at Julius Baer. The trade expectations meanwhile drove risk sentiment in the global financial markets, propelling stocks to fresh record highs. 'Demand from safe-haven seekers has cooled while central bank buying stays sound, even though not as strong as earlier in the year. We still expect gold to move higher in the longer term,' Menke said. The Fed's policy meeting, scheduled for July 29-30, is expected to maintain interest rates within their current range. Investors anticipate the central bank will resume rate cuts in September. Elsewhere, the European Central Bank is also expected to keep interest rates steady on Thursday.
Zawya
24-07-2025
- Business
- Zawya
Gold extends losses after trade deal hopes curb safe-haven demand
Gold prices extended losses on Thursday from the previous session as easing trade tensions increased risk sentiment and weighed on demand for safe-haven assets. Spot gold was down 0.6% at $3,362.59 per ounce, as of 0930 GMT, after shedding 1.3% in the previous session. U.S. gold futures dropped 0.9% to $3,367.30. Following this week's trade deal between the U.S. and Japan, two European diplomats said on Wednesday the European Union and the U.S. are also edging toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and exemptions. "Gold is down this morning due to the positive news flow around global trade... this is reducing downside risks for global growth and supports the prevailing risk-on mood in financial markets," said Carsten Menke, an analyst at Julius Baer. The trade expectations meanwhile drove risk sentiment in the global financial markets propelling stocks to fresh record highs. "Demand from safe-haven seekers has cooled while central bank buying stays sound, even though not as strong as earlier in the year. We still expect gold to move higher in the longer term," Menke said. A safe-haven asset during times of economic uncertainties, gold also tends to do well in a low-interest rate environment. U.S. President Donald Trump will visit the Federal Reserve on Thursday, the White House said, which could intensify tensions between the administration and the central bank. The Fed's policy meeting, scheduled for July 29-30, is expected to maintain interest rates within their current range. Investors anticipate the central bank will resume rate cuts in September. Elsewhere, the European Central Bank is also expected to keep interest rates steady on Thursday. Spot silver slipped 0.7% to $39.02 per ounce, while palladium dipped 2% to $1,252.70. Platinum fell 2.5% to $1,376.45, its lowest in more than a week.
