The central bank continues to buy up, and gold hits a new high, challenging $6,000! Can Taiwanese investors catch this wave of gains?

Global Central Bank “Accumulation Wave” Boosts Gold Prices to Record Highs

This week, the international gold market made history — gold prices first broke through $4,500 per ounce, with year-to-date gains exceeding 70%, marking the strongest annual performance since the 1979 oil crisis. Converted into Taiwan’s commonly used unit “liang,” gold that was about NT$105,000 at the beginning of the year has now surged to NT$177,000, an astonishing increase.

The driving force behind this rally is primarily the large-scale gold purchasing plans by central banks worldwide. According to the latest statistics from the World Gold Council(WGC), central banks have purchased a total of 254 tons of gold up to October this year, with a net purchase of 53 tons in October alone, a 36% increase from the previous quarter. Poland’s central bank leads globally with 83 tons purchased, while Brazil, after a four-year hiatus, restarted its gold buying program, purchasing 31 tons in just two months from September to October. This is seen as a key signal of reducing dependence on the US dollar. These central bank acquisitions are not short-term arbitrage but part of long-term strategic deployment — increasing gold holdings to diversify foreign exchange reserve risks, which also relates to Taiwan’s future gold reserve allocation strategies.

Geopolitics × De-dollarization Wave, Gold Becomes the Ultimate Safe Haven Asset

Behind the surge in gold prices are two intertwined forces: first, the tense global geopolitical situation — ongoing conflicts in the Middle East, the Russia-Ukraine war, and the new US administration’s tariff policies, which have sparked trade war concerns; second, countries accelerating the “de-dollarization” process, seeking to hedge against US dollar depreciation with gold. Krishan Gopaul, senior researcher at the WGC, pointed out that central bank gold purchases in emerging markets have become a long-term strategy rather than short-term operations.

The latest WGC survey also reveals the market’s future direction: 43% of surveyed central banks plan to continue increasing gold holdings over the next 12 months, and 75% of institutions believe the US dollar’s share in global foreign exchange reserves will decline, with the euro and renminbi expected to rise in status.

Silver and Platinum Prices Surge, “Buy Silver Instead of Gold” Rumors Rise

While gold hits new highs, other precious metals are performing even more aggressively. Silver broke through $70 per ounce for the first time this week, with an increase of over 1.5 times this year; platinum also jumped 4% in a single day on the 24th, breaking the $2,300 mark, with an annual increase of nearly 1.6 times. Due to the more rapid rise of silver, there are even counter-discussions in the market suggesting “buy silver rather than buy gold.”

However, Shi Wenzhen, Vice Chairman of the Taipei City Gold & Silver Jewelry Association, reminds that the current high gold prices pose barriers for small investments — NT$500 is no longer enough to buy physical gold. For investment purposes, priority should be given to gold bars, gold savings accounts, and other purely investment products, rather than gold jewelry, to avoid manufacturing costs eroding realized gains.

Institutional Forecasts Vary Widely: From $3,000 to $6,000, Everyone Has Their View

Facing gold prices at a historic high, forecasts for 2026 show significant divergence:

Optimists are led by Wall Street analyst Ed Yardeni, who boldly predicts gold could surge to $6,000 by the end of 2026. JPMorgan is also quite optimistic, believing central bank gold purchases could reach 755 tons, enough to push gold prices above $5,000. Goldman Sachs forecasts that by the end of 2026, gold could reach $4,900.

Pessimists are led by Citibank, which believes that if geopolitical tensions ease, gold prices could fall back to $3,000 by 2026. These differing views reflect varying assessments of future risk environments among institutions.

Taiwanese Investors’ Entry Strategies: Cautious Diversification and Risk Management

Although gold has become a safe haven and an inflation hedge, current prices are high, and entering the market requires strategic thinking:

Adopt a dollar-cost averaging approach: Avoid heavy single purchases; reduce costs and diversify entry risk through regular, fixed investments.

Diversify among precious metals: Besides gold, pay attention to silver and platinum, but be aware that these tend to be more volatile and require stronger psychological resilience.

Differentiate between investment and consumption: Choose low-fee, easily liquidated channels such as gold ETFs, savings accounts, or gold bars; avoid gold jewelry for pure investment, as manufacturing costs can reduce realized gains.

The global economic landscape is undergoing reconstruction, and the strategic position of gold continues to rise. From ongoing central bank accumulation to Taiwan’s long-term gold reserve planning, this precious metals bull market driven by uncertainty is far from over.