World Gold Council: Gold holdings remain low, but caution is needed regarding overvaluation and macroeconomic risks

According to Odaily, the World Gold Council points out that currently, the significant divergence between confidence in economic prospects and uncertainty in economic policies is one of the key reasons for gold's strong performance over the past year and its continued good performance so far this year. Although some may worry that gold is overbought and it might be difficult to find buyers willing to make small-scale investments, from a strategic perspective, gold holdings remain low. Currently, the core issue facing investors is how to reasonably allocate their portfolios between market outlook certainty and policy uncertainty. Indeed, investors can and should recognize the monetary and fundamental factors driving the market rally—especially with more easing policies expected in 2026. However, overvaluation and persistent macroeconomic risks require cautious treatment, highlighting the necessity for a diversified investment portfolio. As geopolitical shifts and U.S. policy changes continue to affect asset allocation, we believe attention should be paid to high-quality assets, such as gold. (Jin10)