Regional Insights

The global economy and the financial system are experiencing a period of exceptional uncertainty, weighing on growth outlooks. In such a volatile, unpredictable and uncharted environment, gold’s relevance as a strategic portfolio asset has grown even stronger. Given the exceptional uncertainties facing the investment landscape in 2025, it may be prudent for vigilant investors to consider the potential benefits that gold can bring to portfolios.

As we entered 2025, expectations for the US economy were at their highest compared to the previous two years and there was widespread belief that strong growth and significant asset-price increases would continue in 2025. Investors are now growing increasingly concerned over the growth and inflation outlook, both at the US and global levels, from the fallout of the ongoing trade war.

After a sizable rise in 2024, the 10-year Japanese government bond (JGB) yield has climbed further in 2025 to date.

China’s gold jewellery demand has fallen off a cliff after and the weakness has extended into H2. Against this turbulent backdrop, the World Gold Council, together with China Gold News, launched the fifth Annual Chinese Gold Jewellery Retailers survey to identify current market trends and draw clues that will help the industry shape a better future.

Interest rate volatility in Australia has risen sharply recently, pushing up a traditional 60/40 portfolio’s risk. And the elevated inflationary risk – despite recent cooling signs – has weakened bonds’ role as a traditional portfolio risk diversifier. We believe gold’s consistent low correlation with Australian equities and attractive return prospect will benefit local portfolios.

In anticipation of the upcoming US presidential election, our report examines how gold has historically performed during previous elections, the impact of geopolitical uncertainty on its value, and the implications for physical gold demand. Given the US's significant influence on the global economy, understanding these factors is crucial for investors.

Rates and inflation may stay elevated for longer, posing risks to investors' portfolios. Our analysis shows that gold could help improve portfolio performances as a consistent and effective risk diversifier.

While gold investments have been gaining popularity among Japanese households, both life, and property and casualty (P&C) insurers have made limited gold investments, despite the sheer size of the Japanese insurance market in terms of premiums and assets.