Asia-Pacific stock markets soar 26%, with precious metals leading the rally—gold breaks through the $4,500 mark, sparking an investment frenzy

This year’s global stock markets performed brilliantly, with the MSCI Asia Pacific Index (excluding Japan) accumulating a 26% increase so far, marking the strongest annual performance since 2017. Behind this rally, the rise of safe-haven assets has become a key driver. Spot gold first broke through $4,500 per ounce, while silver surged past $72, both setting new historical records. Asian stock markets, especially the Nikkei Index and KOSPI, respectively gained 26% and 72%, directly reflecting this regional safe-haven wave.

Why Are Gold and Silver Reaching New Highs Together?

Silver’s gains are particularly remarkable, with an almost 150% increase year-to-date, potentially setting the largest annual gain in history, while gold’s rise exceeds 70%. The factors driving this continuous climb in precious metals are quite complex:

Escalating geopolitical uncertainties are the primary catalysts, with the Ukraine-Russia conflict ongoing and tense US-Venezuela relations, all strengthening global investors’ demand for safe assets. Meanwhile, central banks worldwide are actively increasing gold reserves, providing stable buying support for gold prices, a long-term structural bullish trend.

Expectations of a shift in Federal Reserve policies also play a role. The US labor market shows signs of softening, with widespread market expectations that the Fed will start a rate-cutting cycle by 2025, which is bullish for non-dollar assets, especially dollar-denominated gold.

Notably, strong industrial demand for silver gives it a unique upward momentum. Besides its traditional safe-haven properties, silver’s applications in AI chips, solar panels, green energy industries, and other cutting-edge fields are continuously growing. The global supply has been tight for five consecutive years, making silver a dual-purpose asset for preservation and growth.

International Financial Giants Turn Bullish, Target Prices Head Toward the 5-Handle

Several top global financial institutions have recently raised their gold price targets, generally optimistic about gold challenging the $5,000 mark next year:

• Goldman Sachs estimates gold will reach $4,900 in 2025
• J.P. Morgan sets a target of $5,055, boldly expecting it could hit $5,400 by 2027
• Deutsche Bank, UBS, Societe Generale all share bullish outlooks, eyeing $5,000+

Ray Dalio, founder of Bridgewater Associates, and renowned hedge fund manager Ken Griffin recently publicly stated that, under the current geopolitical and monetary policy environment, gold’s safety and preservation qualities may surpass those of US dollar assets. Both industry heavyweights suggest investors should allocate a moderate portion of their portfolios to gold to enhance defensive positioning.

New Opportunities for Taiwanese Investors: Precious Metal ETFs Become Year-End Focus

This wave of international precious metal markets has also spilled over into Taiwan. Related ETFs have become key investment targets, including:

• Yuanta S&P Gold ETF (00635U)
• Yuanta Dadao Silver ETF (00738U)

As international gold and silver prices hit record highs, these ETFs have recently surged to new highs, with their scale and number of beneficiaries doubling, reflecting a clear increase in local investor demand for precious metal allocations.

Institutional analysis indicates that Taiwanese investors’ asset allocations are still overly skewed toward stocks, with relatively low holdings in gold and silver. As the US dollar faces potential long-term depreciation pressures, and with rate cuts imminent, coupled with ongoing geopolitical risks, gold’s safe-haven function may surpass traditional bonds.

Smart Allocation Strategies: Three Steps to Participate in the Precious Metals Rally

To effectively participate in this market trend, investors may consider the following strategies:

Regularly invest in gold ETFs: By spreading entry points, reduce short-term price volatility risks and participate in the long-term upward trend.

Single-lump sum balanced portfolio: Adding about 5–10% of gold-related assets to existing portfolios can effectively hedge market fluctuations and enhance overall stability.

Closely monitor silver’s dual themes: Silver’s dual role as a safe haven and industrial metal, especially in AI chip manufacturing and solar energy applications, continues to expand, offering significant growth potential.

Summary: Gold Has Become a Core Asset Allocation for 2026

In today’s uncertain global economic and political landscape, gold has evolved from a traditional safe-haven tool into a widely favored store of value among central banks, institutional investors, and retail investors alike. With ongoing technical breakthroughs, solid fundamentals, and international institutions continuously raising target prices, all signs point to a long-term upward trajectory for gold prices.

Taiwanese investors should not only keep an eye on domestic stock opportunities but also consider allocating part of their assets to gold and silver-related products. This not only aligns with international market gains but also adds a solid layer of “hedging protection” to their asset portfolios.