Investment Commentary

India’s gold demand rose 10% y/y to 151t in Q1, while nearly doubling in value to a record INR 2,275bn (US$25bn). Growth was led by investment demand, up 54% y/y to 82t, with bar and coin demand nearly matching jewellery consumption and ETFs hitting record highs. Jewellery volumes fell 19% y/y, but spending rose 47%. Investment demand is set to remain supportive, while jewellery demand may stay under pressure from inflation and economic headwinds.

US gold demand softened in Q1 2026 as a sharp reversal in ETF flows outweighed resilience across other segments. Physically backed US gold ETFs recorded sizeable monthly outflows in March, erasing inflows accumulated earlier in the quarter amid risk‑off conditions, elevated positioning and higher opportunity costs. Bar and coin investment provided a partial offset as retail interest remained resilient, while jewellery demand fell to a record quarterly low on affordability pressures. Despite near‑term volatility, ongoing geopolitical tensions, policy‑rate uncertainty and broader macroeconomic risks continue to support the longer‑term investment case for gold in the US.

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.

March was the weakest month for gold since June 2013, a move driven by deleveraging and liquidity dynamics, not fundamentals. Looking ahead, there are some green shoots for gold to re-establish its positive trend but short-term risks remain.

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.

Gold and silver may fall under the same “precious metals” umbrella, but they behave very differently. Gold’s balanced demand, deep liquidity and lower volatility make it a steady diversifier that typically shines during market stress, while silver’s industrial- heavy profile and thinner market leave it more cyclically exposed and with a higher‑beta. For investors, that means gold tends to play the defensive anchor, with silver better suited as a tactical satellite that amplifies market moves. Together, they can complement each other, but they don’t serve the same role in a portfolio.

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