Gold Prices Rise Amid Central Bank Shifts and Investor Diversification in 2026

Gold prices have surged to record highs, driven by strong momentum, geopolitical tensions, and central banks' strategic shifts, notably by India and China reducing US Treasury holdings while increasing gold reserves. Investors, including prominent figures like Hong Kong billionaire Cheah Cheng Hye, are increasing gold allocations amid market volatility and uncertain global economic conditions. While equities have moderated, diversification into precious metals is seen as a risk management strategy for 2026 and beyond.