Red Horse Year: Gold Price Trends for the Next Six Months

Price Forecast: Challenging New Heights

• Short-Term Target (First Half of 2026):
  DBS Bank and related financial institutions estimate that the gold price is expected to test $5,500 in the second half of the year further, with a support level around $4,450 in the first half.

• Annual Extreme Value:
  Some more aggressive analysts are even optimistic that the price could reach a high of $7,150 in 2026.

Three Major Drivers Supporting Higher Gold Prices

1. Geopolitical Safe-Haven Demand: The sense of "chaos" in the international order persists (such as the recent event of the US deploying troops to Venezuela), driving continuous inflows of safe-haven funds.

2. Central Bank De-Dollarization: Central banks worldwide (especially in emerging markets) continue to reduce their holdings of US dollars, allocating a portion of their foreign exchange reserves to gold, creating strong support from physical demand.

3. US Monetary Policy: Amid ongoing US inflationary pressures and the background of deficit monetization, expectations for a low-interest-rate environment reduce the opportunity cost of holding gold.

Risk Warning:
Despite the generally bullish macro-environment, institutions like Citi have warned that if the US dollar strengthens exceptionally or interest rate adjustments exceed expectations, the gold price could face significant volatility within its high and low ranges.

Regarding your current investment allocation, are you more inclined towards physical gold (bars/coins) or paper gold/ETF-type products?