Amid ongoing tensions in the Middle East, global financial markets are experiencing volatility. Greg Hirt, Chief Investment Officer for Global Multi-Asset at Allianz Investment, suggests that unlike previous Iran-Israel conflicts, the current Middle East situation has suddenly become globally interconnected. The investment market now reflects a scenario where both "risk" and "opportunity" coexist. He stated, "If you have cash reserves ready, now is a good time to deploy them."

Hirt pointed out that historical precedents show that external shocks often present favorable entry opportunities, allowing investors to reassess previously attractive assets or regions that were out of reach. He anticipates that markets will trend more positively over the next two to three weeks. Therefore, instead of focusing solely on risks, investors should take advantage of the current oversold market conditions to reposition into investment targets that were previously too expensive to acquire.

He indicated that within the first two weeks, the market will gain a clearer understanding of Iran's capabilities and their ability to withstand prolonged shocks. It will also reveal how quickly the United States aims to find a solution and return to negotiations. "Even though Trump claims he won't negotiate, based on what I've heard from various channels, others seem willing to engage in discussions," Hirt added.

With geopolitical tensions rising, oil prices have surpassed the $100 per barrel mark. Hirt noted that higher market volatility and risk tend to drive oil prices upward. However, he is more focused on the trends in 6 to 12-month oil futures contracts. Greater volatility in 12-month contracts may indicate that the market is beginning to anticipate a prolonged conflict in the Middle East.

That said, Hirt believes that global oil supply is already in surplus, making immediate production increases unnecessary. Moreover, most countries have sufficient oil reserves. More importantly, oil production and distribution can adjust quickly to meet demand if needed. Compared to oil, he is more concerned about natural gas prices. "Natural gas prices are relatively stickier—they rise slowly and fall slowly. This significantly influences long-term inflation expectations, and in the long run, natural gas has a far greater impact on global prices than oil. Therefore, I believe natural gas prices are the key focus for global central banks," he explained.

Regarding gold prices, Hirt mentioned that he has maintained a fairly optimistic outlook on gold over the past two and a half years, largely due to the slow but steady progress of long-term de-dollarization. Central banks worldwide have been increasing their gold reserves. However, no currency has yet emerged to replace the U.S. dollar. Following a significant price surge, the gap between gold prices and their fundamentals has widened, leading him to slightly reduce his positive stance on gold for now.