The Case for Gold

Indonesia's investment landscape is navigating a confluence of pressures in 2026. Headline inflation is rising, driven by global energy price shock stemming from the Middle East conflict; Bank Indonesia has abandoned its rate-cut guidance, and domestic equities have suffered a shock following MSCI's threat to downgrade Indonesia from Emerging Market to Frontier Market status. Against this backdrop, gold remains a compelling asset for both institutional and individual investors.

Around 240 million Muslims in Southeast Asia aspire to perform the annual Hajj pilgrimage. Serving this community, Hajj savings funds carry a dual mandate: safeguard pilgrims’ deposits and generate returns that preserve purchasing power over what can be decades-long waiting periods. This report dives into the case for gold as a strategic, Shari’ah-compliant asset class within Hajj fund portfolios.

Following an epic 2025, gold’s volatility has risen notably in 2026. This has prompted a key concern among investors: is gold still a strategic asset for Japanese portfolios? Our analysis shows that with various challenges facing Japanese investors in 2026, such as sticky inflationary pressure, rising bond-equity correlation and geopolitical uncertainties, gold remains a strategic asset and improves local portfolio performance.

Australia’s economy continues to grow but resurgent inflation and the Reserve Bank of Australia (RBA)’s decision to resume tightening in February 2026 – diverging from some of its peers – raises questions around portfolio allocations. Australia's unique geopolitical positioning, with its fortunes tied to increasingly affluent trade partners within the Indo-Pacific while being strategically aligned with the US, has created an asymmetry that makes portfolio diversification crucial. Against this backdrop, gold’s role in Australian portfolios warrants renewed attention. For Australian investors, a strategic allocation to gold offers both a macro hedge and a portfolio diversifier at a time when uncertainty takes centre stage.

Despite strong macroeconomic credentials, Indian financial markets have delivered softer returns amid currency weakness, subdued capital flows, rising global uncertainty. In this environment, gold has emerged as a notable outperformer. Its ability to provide effective diversification, act as buffer during periods of systemic stress, and a currency hedge, reinforces its strategic role in portfolios. For Indian investors, gold remains a resilient anchor for portfolio stability

The consensus narrative of a global economy that has proved “robust” in the face of tariffs and turmoil underestimates the very real risks that remain. Investors can and should recognise the monetary and fundamental forces that have driven markets higher – especially with more easing on the way in 2026. But stretched valuations and persistent macro risks demand caution, emphasising the need for diversified portfolios. As geopolitics and shifting US policies continue to impact asset allocation, we believe there should be a focus on quality assets, such as gold.

Gold has a key role as a strategic long term investment & is crucial for a well-diversified portfolio. Download our case for a strategic allocation to gold.

The growing role of alternatives in institutional portfolios reflects a search for better returns and diversification. But these benefits come with trade-offs—like illiquidity and lagged valuations. This paper shows how gold can play a valuable complementary role. Its liquidity, low correlation, and performance during market stress make it a useful shock absorber alongside less liquid assets.