As Markets Teeter, EBC’s David Barrett Calls for Caution, Lower Leverage, and Strategic Gold Allocation

LONDON--( BUSINESS WIRE )-- In a climate defined by rising macroeconomic uncertainty and widening asset class divergence, David Barrett, CEO of EBC Financial Group (UK) Ltd, is urging global investors to reduce leverage, diversify prudently, and prepare for uncertainties. His remarks, shared in a feature interview aired on China Central Television (CCTV), delivered a framework for a stable approach to investing in turbulent times.

The interview, which featured Barrett alongside representatives from Goldman Sachs, Citigroup, and JPMorgan, explored the factors reshaping global asset allocation and the evolving role of gold as a strategic hedge.

From Peak to Pullback: The Gold Recalibration

In early 2025, gold surged over 25% year-to-date, briefly surpassing $3,500 per ounce—far outperforming equities and commodities. While U.S. stocks posted moderate gains and oil markets slumped, gold's momentum highlighted persistent risk aversion in investor sentiment.

However, according to CCTV’s coverage, gold pulled back more than 5% in May, following signs of easing trade tensions and a drop in the U.S. Consumer Price Index (CPI) to 2.3% in April—a shift that tempered inflation expectations and briefly weakened gold’s appeal as an inflation hedge.

“People should be conservative with their leverage and their exposure,” said Barrett. “Keep your powder dry so you can react to these ever-changing news cycles. It gives you the opportunity to exploit moves when they come along.”

Sovereign Risks and the Long View

Barrett also drew attention to deepening structural concerns—particularly in sovereign debt markets. Moody’s downgrade of the U.S. sovereign credit rating from Aaa to Aa1 on 17 May 2025 stripped the U.S. of its final top-tier rating. Paired with weak demand at 20-year U.S. and Japanese bond auctions, this has pushed long-term yields to multi-year highs and stirred investor anxiety.

“This isn’t about risk aversion—it’s about intelligent positioning,” Barrett added. “Gold is not just a safe haven—it’s a barometer for uncertainty.”

Central Banks Rewriting the Playbook

Goldman Sachs now forecasts gold to reach $3,700 by year-end, with JPMorgan projecting $4,000 per ounce by Q2 2026. However, Citigroup has warned that weakening retail demand could weigh on prices beyond 2026.

Barrett emphasised that while institutional conviction is strong, investors must balance opportunity with caution—particularly in the face of diverging monetary cycles and fragile geopolitical backdrops.

As gold transitions from a “one-way bull market” to a more volatile repositioning phase, Barrett reaffirmed EBC Financial Group’s role in guiding investors through complexity.

“We remain committed to helping our clients build resilient, forward-looking portfolios. That means understanding when to act, and when to step back,” he said.

About EBC Financial Group

Founded in London’s esteemed financial district, EBC Financial Group (EBC) is a global brand known for its expertise in financial brokerage and asset management. Through its regulated entities operating across major financial jurisdictions—including the UK, Australia, the Cayman Islands, Mauritius, and others—EBC enables retail, professional, and institutional investors to access a wide range of global markets and trading opportunities, including currencies, commodities, shares, and indices.

Recognised with multiple awards, EBC is committed to upholding ethical standards and is licensed and regulated within the respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC).

At the core of EBC are a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves.

As the Official Foreign Exchange Partner of FC Barcelona, EBC provides specialised services across Asia, LATAM, the Middle East, Africa, and Oceania. Through its partnership with United to Beat Malaria, the company contributes to global health initiatives. EBC also supports the 'What Economists Really Do' public engagement series by Oxford University's Department of Economics, helping to demystify economics and its application to major societal challenges, fostering greater public understanding and dialogue.

https://www.ebc.com/

View source version on businesswire.com: https://www.businesswire.com/news/home/20250612124291/en/