Australia's sovereign wealth fund increases its gold holdings, warning of the risk of "new shocks" to the global economy

The Future Fund, Australia's sovereign wealth fund, has released its latest report, stating that the global economy is increasingly at risk of "newer, more frequent and more intense shocks". In response, the fund has increased its allocation to gold, actively managed equities, and hedge funds.

Not only Australia, but also Azerbaijan's sovereign wealth fund, the State Oil Fund (SOFAZ), purchased a total of 35 tons of gold in the first half of this year, reaching the upper limit of its precious metal allocation in its investment policy. In terms of pension funds, India's pension regulatory authority is considering relaxing restrictions on gold investment, and intends to allow pension funds to allocate gold exchange traded funds (ETFs).

According to recent data released by the World Gold Council, global gold demand grew by 1% year-on-year to 3,717 tonnes in the first 10 months of this year, and by 41% in value terms to $384bn. In the first three quarters, investors created 222 tonnes of gold ETF buying, and demand for gold bars and coins exceeded 300 tonnes for the fourth consecutive quarter, jointly driving the overall demand.

Looking ahead to 2026, Goldman Sachs stated in a report on the 17th that it expects gold prices to rise to $4,900 per ounce by the end of 2026, and if private investors continue to diversify their portfolios through gold, prices may rise further. As of the time of press, the spot gold price is approximately $4,011 per ounce.