Schroders Warms To Gold, Remains Constructive On Equities

Editorial Staff

1 September 2026

has become more optimistic about the case for owning gold and the UK-headquartered wealth and investment firm is continuing to take a constructive view on cyclical assets, particularly equities.

In a note from the multi-asset investment team, Schroders said a mix of resilient global growth and corporate earnings are supporting its general position. High valuations for artificial intelligence stocks, leveraged positions and market concentrations are reasons for caution, however.

“Following the strong rally since the second half of July, we acknowledge that market expectations have now moved into extended territory. However, in the absence of any meaningful deterioration in growth dynamics, we believe a pro-cyclical positioning remains warranted,” Schroder said.

The firm has reinforced its preference for holding technology and widened the range of German equities that it holds, playing to the idea that industrial and defence stocks are attractive sectors. Schroders has also retained exposure to natural resources by investing in a mix of global mining businesses and energy producers.

Tactically, Schroders said it is positive on government bonds because real yields look attractive. It has a tactical allocation to US government bonds (Treasuries) because inflation-adjusted yields are attractive.

Explaining its upgrade on gold, Schroders said it acted because central bank purchases are supportive. Even though gold has already gained ground, the yellow metal is attractive in the medium term.

Major risks to Schroders’ “constructive” stance will be accelerating inflation, a “meaningful” worsening of the growth outlook and if investors lose confidence in AI investment being able to deliver results.