Summary:
EBC Financial Group (UK) Ltd CEO, David Barrett shares key insights in a CCTV interview on global markets and investment strategies.
On 31 May 2025, David Barrett, CEO of EBC Financial Group (UK) Ltd, spoke with China Central Television (CCTV) to share his in-depth views on the current global economic direction and investment strategies.
Following a cooling in international trade tensions, gold has dropped more than 5% from its April highs and exhibited sharp volatility. Yet Barrett highlighted that investors continue to face risks from fluctuating US tariff policies, rising long-term government bond yields in the US and Japan, and ongoing regional conflicts.

Bond Yields Climb as Credit Concerns Deepen
Since early May, the long-term yields of US and Japanese government bonds have repeatedly hit new highs. On 17 May, Moody's downgraded the US sovereign credit rating from AAA to Aa1. Several institutions have warned that the long-term bond markets of developed countries are fragile, with bond supply increasing.
Why Central Banks Keep Buying Gold
Corresponding to these risks, global central banks have steadily increased their gold reserves. Since 2010, central banks worldwide have been net purchasers of gold for fifteen consecutive years, reflecting a diversification from dollar-based assets.
Goldman Sachs' Global Head of Commodities Research, Samantha Dart, notes that this is due to a structural shift in gold demand, as central banks boost gold holdings to diversify their reserves. For institutional investors, increasing gold exposure is a reasonable approach to portfolio diversification.
Several international investment banks remain optimistic on gold's prospects. Goldman Sachs forecasts gold prices could reach USD 3,700 per ounce by the end of 2025, while JPMorgan expects gold to hit USD 4,000 per ounce in the second quarter of 2026.

Stay Nimble: EBC's Advice on Risk and Leverage
With global market volatility rising and asset correlations strengthening, Barrett advises investors to adopt a cautious approach. He states:
"Less leverage, more caution, keep your powder dry so that you can react to these everchanging news cycles. People should be conservative with their leverage and their exposure, because it does actually give them the opportunity to exploit moves when they come along."
Citigroup has warned that waning retail investor demand could put downward pressure on gold prices after 2026.
Gold's Role as a Strategic Hedge
Gold essentially serves as a hedge against risks in the international economic and policy landscape. Its inflation-resistant and safe-haven characteristics make it a stabiliser for preserving asset value. However, as a non-yielding asset, gold is subject to value fluctuations and should be allocated prudently.
EBC Financial Group's Commitment
EBC Financial Group remains at the forefront of the industry, leveraging global insights to provide investors with a reliable trading environment to confidently navigate complex economic conditions and seize emerging investment opportunities.
Watch the full CCTV interview with David Barrett to gain more insights into navigating today's dynamic markets.
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