HSBC trims its gold overweight and lifts oil to outright overweight
The change follows the bank's decision days earlier to cut global equities to neutral from maximum overweight.
Published
Chart: GLD, a fund that holds gold, one-minute prices, three sessions
HSBC has cut its overweight position in gold and raised oil to an outright overweight. The shift moves the bank's conviction from one asset to another.
The gold cut comes days after HSBC cut global equities to neutral from maximum overweight. Taken together, the moves suggest the bank is reallocating where it places its bets rather than turning defensive across the board. An outright overweight in oil is itself a bet on the direction of prices, not a safe holding.
For gold, the change removes one of its more prominent recent bulls. HSBC's own stance had been a supportive point for the metal, and that support is now reduced.
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