2026 GOLD UPDATES

Current prices offer an opportunity to build an allocation to gold as a sensible diversifier for portfolios. Gold prices in a rising rate environment have exhibited a pattern of initial weakness, followed by a recovery towards the end of the rate hike cycle. Structural demand drivers, including central bank demand, market uncertainty, and the adoption of gold as a portfolio diversifier remain intact.

In a portfolio context, it is important to have assets that move in a low or uncorrelated manner, and gold is an asset class that has different price actions under various economic conditions and inflation regimes. Having said that, we have also seen in a systemic risk-off environment, that gold is also not spared. For example, earlier this year, the central bank of Turkey sold gold holdings to pay for the purchases of oil and energy when the Iran conflict started. Investors sell what they can and not necessarily what they should. This highlights the nature or characteristics of money.

Risk-to-Reward profile of Gold in an Investment Portfolio

Gold’s attributes of long-term return potential, liquidity and diversification benefits can strengthen overall portfolio outcomes. Taken together, these characteristics suggest that a strategic allocation to gold can enhance a portfolio’s risk-adjusted return profile.

Analysis across 5-, 10- and 20-year periods illustrates the potential contribution of gold within a diversified institutional portfolio. Based on a hypothetical portfolio comprising 50% equities and 50% fixed Income, increasing allocation to gold, between 2.5% and 20%, would have resulted in higher risk-adjusted returns and lower drawdowns (Figure 2, 3 & 4)

Demand and Supply

A surge in US Treasury yields and the US dollar alongside a drop in futures positions helped drive prices lower in September 2026, despite impressive gold ETF (exchange-traded fund) inflows. Global physically-backed gold ETFs attracted US$10bn in September 2026, lifting 3Q inflows to a record US$31bn, led by European- and North American-listed fund. Despite lower gold prices, global holdings rose 67 tonnes to a record of 4,256 tonnes. Year-to-date till September, the biggest growth of +23.7% is from Asia ahead of other regions. Meanwhile, 2Q 2026 total gold supply was 1269 tonnes, 0% year-on-year.

Central Bank gold demand remains strong at approximately 79 tonnes in August 2026, more than pre-2022 of 17 tonnes, with China accounting for a large share. Emerging market central bank especially China, remain underweight gold relative to plausible long-term allocations, while the motivation for diversifying away from Group of 7 (G7) reserve currencies, including geopolitical and financial risk likely remain in place. Increasingly the debate shifted from “whether to own gold” to “where to store it”, revealing concerns around security and cross-country trust. Foreign Central Bank holdings in New York Fed fell by 40 tonnes in August 2026, while custodial holdings at Bank of England rose by 46 tonnes. The continued central bank diversification remains the main structural driver of the constructive view on gold.

Key Features of the LionGlobal Singapore Physical Gold Fund

The LionGlobal Singapore Physical Gold Fund offers a convenient way to gain direct exposure to physical gold held in Singapore. The Fund is backed by allocated investment-grade gold meeting London Bullion Market Association (LBMA) standards^, with no derivative exposure. Its allocated gold holdings are securely stored at Le Freeport Singapore and fully insured against loss, theft and damage while in custody and transit, subject to standard exclusions.

^LBMA GOLD PRICE IS A TRADE MARK OF PRECIOUS METALS PRICES LIMITED, IS LICENSED TO ICE BENCHMARK ADMINISTRATION LIMITED (IBA) AS THE ADMINISTRATOR OF THE LBMA GOLD PRICE, AND IS USED BY LION GLOBAL INVESTORS LIMITED WITH PERMISSION UNDER LICENCE BY IBA.

All data are sourced from Lion Global Investors and Bloomberg as at 2 November 2026 unless otherwise stated.

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This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation for the purchase or sale of any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs.
The LionGlobal New Wealth Series II - LionGlobal Singapore Physical Gold Fund (the “Fund”) is not like a typical unit trust offered to the public in Singapore. The Fund comprises both classes of units listed and traded on the Singapore Exchange (“SGX-ST”) and classes of units which are neither listed on the SGX-ST nor any other stock exchange.
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You should read the prospectus and Product Highlights Sheet of the Fund, which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of the appointed Participating Dealers (“PDs”), agents or distributors (as the case may be) for further details including the risk factors and consider if the Fund is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to purchase units in the Fund. Applications for units in the listed or unlisted classes of the Fund must be made in the manner set out in the prospectus.

Investments in the Fund are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the Fund is not guaranteed and the value of units in the Fund and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments as well as any predictions, projections, or forecasts are not necessarily indicative of the future or likely performance, payout yields and payments of the Fund. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Any dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the Fund. There can be no assurance that any of the allocations or holdings presented will remain in the Fund at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The Fund may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for the purpose of efficient portfolio management. The Fund's net asset value may have higher volatility due to its narrower investment focus (primarily in Gold (as defined in the prospectus)), when compared to funds with more diversified portfolios. LGI, its related companies, their directors and/or employees may hold units of the Fund and be engaged in purchasing or selling units of the Fund for themselves or their clients.

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THE LBMA GOLD PRICE, WHICH IS ADMINISTERED AND PUBLISHED BY ICE BENCHMARK ADMINISTRATION LIMITED (IBA), SERVES AS, OR AS PART OF, AN INPUT OR UNDERLYING REFERENCE FOR LIONGLOBAL SINGAPORE PHYSICAL GOLD FUND.
LBMA GOLD PRICE IS A TRADE MARK OF PRECIOUS METALS PRICES LIMITED, AND IS LICENSED TO IBA AS THE ADMINISTRATOR OF THE LBMA GOLD PRICE. ICE BENCHMARK ADMINSTRATION IS A TRADE MARK OF IBA AND/OR ITS AFFILIATES. THE LBMA GOLD PRICE AM, AND THE TRADE MARKS LBMA GOLD PRICE AND ICE BENCHMARK ADMINISTRATION, ARE USED BY LION GLOBAL INVESTORS LIMITED WITH PERMISSION UNDER LICENCE BY IBA.
IBA AND ITS AFFILIATES MAKE NO CLAIM, PREDICATION, WARRANTY OR REPRESENTATION WHATSOEVER, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED FROM ANY USE OF THE LBMA GOLD PRICE, OR THE APPROPRIATENESS OR SUITABILITY OF THE LBMA GOLD PRICE FOR ANY PARTICULAR PURPOSE TO WHICH IT MIGHT BE PUT, INCLUDING WITH RESPECT TO LIONGLOBAL SINGAPORE PHYSICAL GOLD FUND. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL IMPLIED TERMS, CONDITIONS AND WARRANTIES, INCLUDING, WITHOUT LIMITATION, AS TO QUALITY, MERCHANTABILITY, FITNESS FOR PURPOSE, TITLE OR NON-INFRINGEMENT, IN RELATION TO THE LBMA GOLD PRICE, ARE HEREBY EXCLUDED AND NONE OF IBA OR ANY OF ITS AFFILIATES WILL BE LIABLE IN CONTRACT OR TORT (INCLUDING NEGLIGENCE), FOR BREACH OF STATUTORY DUTY OR NUISANCE, FOR MISREPRESENTATION, OR UNDER ANTITRUST LAWS OR OTHERWISE, IN RESPECT OF ANY INACCURACIES, ERRORS, OMISSIONS, DELAYS, FAILURES, CESSATIONS OR CHANGES (MATERIAL OR OTHERWISE) IN THE LBMA GOLD PRICE, OR FOR ANY DAMAGE, EXPENSE OR OTHER LOSS (WHETHER DIRECT OR INDIRECT) YOU MAY SUFFER ARISING OUT OF OR IN CONNECTION WITH THE LBMA GOLD PRICE OR ANY RELIANCE YOU MAY PLACE UPON IT.

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