Gold’s role in Australian portfolios
Australia’s economy continues to grow but resurgent inflation and the Reserve Bank of Australia (RBA)’s decision to resume tightening in February 2026 – diverging from some of its peers – raises questions around portfolio allocations. Australia's unique geopolitical positioning, with its fortunes tied to increasingly affluent trade partners within the Indo-Pacific while being strategically aligned with the US, has created an asymmetry that makes portfolio diversification crucial.
Against this backdrop, gold’s role in Australian portfolios warrants renewed attention. This report finds that gold has delivered positive returns across all RBA rate regimes since 2010, appreciated notably in AUD terms since 2022, and provides meaningful downside protection during equity stress. For Australian investors, a strategic allocation to gold offers both a macro hedge and a portfolio diversifier at a time when uncertainty takes centre stage.
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