Allianz Investment: Expected strategic value of gold will continue through 2026 and beyond. Short-term market adjustments may bring good entry opportunities.

On December 15, Allianz Investment published an article stating that for the past few decades, the role of gold in investment portfolios has been marginalized due to market stability and low inflation environment, but is now making a strong comeback. The recent rise in gold prices is mainly driven by structural changes, which the institution identified at the beginning of 2025, including central bank demand, fiscal concerns, and de-dollarization. However, some more traditional factors have also played a role in boosting the trend. Gold has low correlation with stocks and US treasury bonds, and its value as a "real asset" in protecting purchasing power is further strengthened in an increasingly diversified geopolitical economic landscape. Looking ahead, Allianz Investment expects the strategic value of gold to continue until 2026 and beyond, and suggests that short-term market adjustments may present good buying opportunities.