Core Viewpoint - Amundi SA, Europe's largest asset management company, indicates that increasing tensions between the U.S. and other countries are leading investors to reduce their dollar assets and shift towards gold, which will continue to support rising gold prices [1][3]. Group 1: Investment Trends - The chief investment officer of Amundi, Vincent Mortier, states that the significant U.S. fiscal deficit and uncertainty regarding the Federal Reserve's future monetary policy are driving funds from the dollar to gold [1]. - Mortier emphasizes that gold has been a consistent asset allocation for the past two and a half years and believes this strategy will continue, as gold serves as a quality tool for hedging against currency depreciation and maintaining purchasing power [1]. Group 2: Market Performance - Gold prices have seen a seven-day consecutive rise, with prices surpassing $5,000 per ounce for the first time on Monday. Over the past 12 months, international gold prices have surged by 85%, while the dollar index has decreased by 8.5% [3]. - Current demand for gold is primarily driven by institutional investors such as central banks and sovereign wealth funds [3]. Group 3: Geopolitical Context - Mortier comments on the pressures exerted by the Trump administration on traditional allies, including recent disputes with European countries over Greenland, suggesting that these actions will have consequences [3]. - He notes that new alliances are gradually forming in response to external pressures, highlighting Europe's stance on the Greenland issue as a significant development [3]. - Canadian Prime Minister Mark Carney recently called for middle powers to act in concert and warned against the coercive behavior of larger nations [3]. Group 4: Currency Alternatives - Mortier indicates that there is currently no compelling reason to allocate to other major currency assets, as investors are hesitant to buy euros and the yen is under pressure, making gold the optimal alternative [3]. - The trend of client allocation behavior clearly reflects this shift towards gold [3].