On September 30, equity investors who continue to hold positions may also add another type of asset to manage portfolio risk.

Vatee Forex noted that analysis from MarketVector suggests that even as stock market volatility remains relatively calm, some funds are still treating gold as a hedging tool.

This helps explain why rising bond yields and higher holding costs have not completely blocked gold from attracting allocation demand.

Stock and bond investors may focus on different variables: the former emphasize earnings growth, while the latter are more sensitive to funding costs.

Vatee Forex believes the two judgments can coexist in the same market, and holding gold does not necessarily equate to a fully bearish view on stocks.

The key lies in which type of risk funds want to manage with gold, and how it interacts with existing assets.

In the report, the volatility index was once around fifteen and later about seventeen point five, which is not enough to represent full-scale panic.

Lower volatility only describes market expectations over a certain period; it does not eliminate potential shocks.

Once cash demand suddenly increases, gold's easy convertibility may also attract selling, and the original hedging relationship would then need to be retested against actual market conditions.

Net fund inflows likewise only represent changes in a specific investment channel, and the direction of off-exchange holdings and other accounts may not be completely consistent.

Vatee Forex analysis says that going forward, fund flows should be combined with stock volatility and cross-asset linkages.

If gold fund flows remain stable while equity holdings are not significantly withdrawn, the portfolio diversification explanation may be closer to reality.

If assets fluctuate sharply at the same time, attention should be paid to whether cash constraints have exceeded routine hedging demand, and judgments from calm periods should not be copied directly.