Europe's largest asset management company Amundi stated that as the dominance of the US dollar wavers, investors are accelerating the reduction of dollar assets and turning to gold, which remains the most realistic alternative in the current market environment, with further price increases still possible.
On the 27th, Amundi's Chief Investment Officer Vincent Mortier pointed out in an interview with Bloomberg Television that in addition to geopolitical factors, the massive US deficit and the uncertainty of future Federal Reserve policies are also key driving forces behind the large-scale shift of funds from the dollar to gold. The company believes that in the long term, gold is an effective tool for resisting currency depreciation and maintaining purchasing power.
Mortier specifically emphasized that in the current global currency market landscape, other major currencies are struggling to serve as effective alternatives to the dollar. He candidly stated that current investors &#34;may not want to buy euros, and the yen is under pressure,&#34; making gold the only alternative choice, a trend that has become particularly evident in the asset allocation of its clients.
Driven by this demand for safe-haven assets and asset migration, gold prices broke through the $5,100 per ounce mark for the first time in history on Monday, and on Tuesday, it welcomed its seventh consecutive day of increase. Market data shows that gold prices have surged 85% over the past 12 months, while the Bloomberg Dollar Index has fallen 8.5% during the same period.
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<h2>Active Defense of Institutional Funds</h2>
According to Bloomberg, Amundi, which manages approximately €2.3 trillion (about $2.7 trillion) in assets, revealed that this &#34;great migration&#34; from dollar assets to gold is primarily led by institutional investors.
Mortier stated that most of the current demand for gold comes from central banks and sovereign wealth funds. He pointed out:
<blockquote>
&#34;We have been allocating gold for the past two and a half years, and I believe this trend will continue.&#34;
</blockquote>
In his view, in the current macro environment, allocating gold is not only a tactical adjustment but also a means to resist the risk of asset depreciation in the long term.
<h2>Geopolitical Friction Accelerates Outflow of Dollar Assets</h2>
In addition to economic fundamentals, geopolitical friction is also accelerating investors' flight from the dollar. Mortier warned that Trump's ongoing criticism of traditional allies, including recent disputes with European countries over Greenland and ongoing tariff threats, will come at a cost.
&#34;You can't bully your allies like this forever,&#34; Mortier stated:
<blockquote>
&#34;New alliances are beginning to form. Europe's moves on the Greenland issue are very interesting, indicating that under pressure, parties can find new forms of counterattack.&#34;
</blockquote>
Reportedly, 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 being coerced by great powers. Amundi believes that this increasingly isolated situation for the US is persuading many investors to reduce their holdings of dollar assets and turn to gold

Europe's largest asset management giant Amundi pointed out that due to the massive deficit in the United States and geopolitical friction, institutional investors are accelerating their abandonment of the dollar and flocking to gold. Current investors "may not want to buy euros, while the yen is under pressure." In this context, gold, as the most realistic alternative in the current market environment, still has room for price growth

- Amundi, Europe’s largest asset management firm, reports a significant shift from dollar assets to gold as investors perceive the latter as a realistic alternative amid the weakening dollar dominance.  
- CIO Vincent Mortier highlights that geopolitical tensions, the U.S. deficit, and Fed policy uncertainties drive this transition, positioning gold as a safeguard against currency depreciation.  
- The demand for gold is primarily led by institutional investors, and Mortier asserts this trend will continue as they seek to defend against asset value loss in the current macroeconomic climate.

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"Don't buy euros, don't touch yen," European asset management giant Amundi: Under de-dollarization, gold is the most realistic alternative