Data: FactSet; Chart: Axios Visuals

Wealthy clients are increasingly being told by financial advisers to buy gold, betting the Fed's binge of bond buying and an overbought stock market will soon push the precious metal's price up — potentially to its highest ever.

What's happening: A new report from Reuters surveying nine private banks that collectively handle around $6 trillion in assets for the world’s ultra-rich, found they had advised clients to increase their allocation to gold.

  • All of them said they expected gold prices to end the year higher than they are now.

What they're saying: UBS predicts gold will hit $1,800 by year-end in its base-case scenario and could even touch a record high of $2,000 in the event of a second wave of novel coronavirus infections, Reuters' Brenna Hughes Neghaiwi and Simon Jessop report.

  • “With the recent equity rally, people have become more nervous. People are actively seeking out portfolio hedges that might perform well in a range of scenarios,” Kiran Ganesh from UBS’ chief investment office said in the article.
  • Morgan Stanley added a 5% position to commodities including gold in all its models at the end of March.

Between the lines: Gold has been trading in a tight range since April, despite a breakout in the stock market. That could change if wealthy investors begin to make significant moves into gold.

  • "The boost in demand could be a self-fulfilling prophecy for the metal’s price, as any shift in allocation from bond and equity markets, estimated at up to a combined $200 trillion, has a much larger impact on the smaller gold market, estimated at less than $5 trillion," the article notes.

Go deeper

S&P 500 closes at record high for first time since pandemic began

Source: FactSet; Chart: Axios Visuals

The S&P 500 closed at a new high on Tuesday for the first time since February, before the coronavirus pandemic was declared.

Why it matters: It’s among the fastest-ever recoveries on record and comes as millions of Americans remain out of work during one of the worst economic downturns in U.S. history.

A court fight for the ages

The flag flies at half-staff as people mourn on the Supreme Court steps last night. Photo: Tasos Katopodis/Getty Images

Ruth Bader Ginsburg — feminist icon, legal giant, toast of pop culture — left this statement with granddaughter Clara Spera as cancer closed in: "My most fervent wish is that I will not be replaced until a new president is installed."

The big picture: For all that the nation owes "Notorious RBG" — the hip-hop-inspired nickname she enjoyed and embraced — Republicans are planning to do their best to be sure her robe is quickly filled, despite that last wish, with her ideological polar opposite.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 8:15 a.m. ET: 30,539,903 — Total deaths: 952,629— Total recoveries: 20,800,482Map.
  2. U.S.: Total confirmed cases as of 8:15 a.m. ET: 6,726,353 — Total deaths: 198,603 — Total recoveries: 2,556,465 — Total tests: 92,163,649Map.
  3. Politics: In reversal, CDC again recommends coronavirus testing for asymptomatic people.
  4. Health: The dwindling chances of eliminating COVID-19 — Massive USPS face mask operation called off The risks of moving too fast on a vaccine.
  5. Business: Unemployment drop-off reverses course 1 million mortgage-holders fall through safety netHow the pandemic has deepened Boeing's 737 MAX crunch.
  6. Education: At least 42% of school employees are vulnerable.