After experiencing a period of volatility, gold prices have surged to new highs, causing many investors to feel restless, and institutions have begun launching gold-themed wealth management products again.

On September 3rd, London spot gold reached $3,546.9 per ounce intraday, breaking through the key level of $3,500. Taking advantage of the rising gold prices, bank wealth management subsidiaries have been issuing gold-linked wealth management products. On September 3rd, CMB Wealth Management issued a product establishment announcement, with the CMB Wealth Management Zhaorui Focus Gold-linked No. 5 Fixed Income Wealth Management Plan established on September 2nd, linked to SGE Gold 9999 as the underlying asset. In mid-August, CMB Wealth Management had already issued a gold-linked wealth management product. On September 4th, Everbright Wealth Management's Sunshine Qingzhen Ying Phase 7 (Gold-linked Strategy) Fixed Income Wealth Management Product is also currently raising funds.

Banks mainly allocate gold through two methods: one is "fixed income+" wealth management products, where the "+" assets are primarily gold-related, such as gold ETFs, with investment proportions regulated to be within 10%, typically around 5% in practice; the other type is structured wealth management products linked to gold underlying assets, mainly investing in gold-related derivatives, such as the products issued by CMB Wealth Management mentioned above. China Wealth Management Network shows that there are currently 16 gold-linked wealth management products in the market.

"For bank wealth management, gold has always been positioned as an allocation asset, with proportions that won't be too high, but there will be a portion used as a tool to hedge risks and smooth volatility. However, since this year, quite a few products have achieved good returns thanks to rising gold prices, with gold playing a role similar to equity assets in their investment portfolios," said a person from a state-owned bank wealth management subsidiary.

**Institutional Profit-Taking**

Since the beginning of this year, driven by multiple factors including rising expectations of Federal Reserve rate cuts and continuous gold purchases by global central banks, gold prices have shown a sustained upward trend, repeatedly breaking historical records.

Looking at different phases, gold prices climbed slowly during the first four months of this year. Wind data shows that on April 10th, COMEX gold futures broke through $3,400 per ounce, and on April 30th, London spot gold reached $3,508.49 per ounce. Subsequently, market bullish sentiment toward gold further intensified, gold ETF holdings increased, and investors' allocation demand for gold rose significantly.

However, starting from May, gold prices began to retreat from highs, falling back to $3,328.16 per ounce on May 31st.

In June and July, gold fluctuated at high levels. During this period, many overseas investors set their benchmark target for gold prices around $3,500 per ounce, and overseas markets began profit-taking.

In the domestic wealth management market, a large number of wealth management products also triggered redemption events around mid-year. According to incomplete statistics, from June to July, 13 gold-linked wealth management products from multiple wealth management subsidiaries including China Post Wealth Management, Everbright Wealth Management, and CMB Wealth Management automatically matured or matured early due to price triggers.

Regarding this, an investment professional from an asset management institution stated that from April to May, global stock markets performed poorly overall, with only gold rising; but by May, all assets began to rebound, and gold started to weaken.

"In the long term, I think it's difficult for gold to rise significantly for three consecutive years. We've seen substantial gains from 2023 to now, and it may need time to digest the previous gains in the future, but there's unlikely to be a significant pullback. Going forward, we will view gold more as a risk hedging option for portfolios to reduce overall volatility," he analyzed.

**Allocation Value Remains**

Recently, with rising gold prices, many institutions have begun to turn bullish on gold. At the end of August, UBS Wealth Management raised its 2026 gold price forecast, elevating the benchmark targets for late March and late June 2026 to $3,600 and $3,700 per ounce respectively, and proposed a target price of $3,700 per ounce for late September next year.

The underlying reasons are: first, declining U.S. real yields have gradually reduced the opportunity cost of holding gold; second, demand for gold continues to climb.

For wealth management subsidiaries, gold's medium to long-term investment allocation value remains.

"Although gold has risen to relatively high levels, two long-term factors will continue to drive gold asset appreciation. First, the U.S. dollar's status as the global reserve currency is gradually declining. Although this process is lengthy, the trend remains unchanged. Second, allocation behavior from central banks of various countries will also provide medium to long-term support for gold assets," said a person from a joint-stock bank wealth management subsidiary. He emphasized that gold is currently not only an offensive asset but also plays a risk-hedging role.

Another person from a state-owned bank wealth management subsidiary stated that gold performs well when U.S. real interest rates move from high to low levels, and this year, U.S. real interest rates are still at very high positions, close to 2%. From a long-term trend perspective, gold prices will continue to rise, and gold+ wealth management products will continue to receive market recognition.

Although gold continues to surge higher in the short term, multiple wealth management subsidiary personnel indicated that institutions currently maintain a relatively calm attitude toward gold. They believe that gold will continue to fluctuate at high levels in the short term, so they don't recommend chasing highs at this time.

"Although we have always been optimistic about gold assets, from an asset allocation perspective, we currently don't have a strong 'buying impulse' because gold doesn't have the clear entry signals it had at the end of last year. However, we consistently adhere to the long-term logic that gold's importance as an 'asset allocation hedging tool' will continue to strengthen," said a person from a joint venture wealth management subsidiary.