Group 1: Japanese Monetary Policy - Former Bank of Japan Executive Director Hideo Hayakawa predicts that Governor Kazuo Ueda may implement up to four interest rate hikes before 2027, with three expected after the widely anticipated hike next week [1][6] - The market expects the Bank of Japan to raise rates to 0.75% at the meeting on December 19, marking the first increase since January [1][6] - Hayakawa suggests that the Bank of Japan may feel it is "completely behind the curve," indicating that the tightening cycle is not yet over even after the anticipated hike [1][6] Group 2: Economic Stimulus and Inflation - Former central bank officials warn that Prime Minister Fumio Kishida's expansionary fiscal policy could force the Bank of Japan to accelerate rate hikes and raise the terminal interest rate [1][6] - Kishida's recently announced economic stimulus package exceeds economists' expectations and may exacerbate inflationary pressures [1][6] - This situation indicates that Japan is moving away from an era of ultra-loose monetary policy, prompting investors to prepare for more frequent policy adjustments [1][6] Group 3: Gold Market Analysis - Despite record-high gold prices, U.S. private investors' holdings in gold have not significantly changed, with their allocation to gold ETFs still 6 basis points lower than the peak in 2012 [2][7] - As of the second quarter of this year, gold ETFs account for only 0.17% of U.S. private financial portfolios, a negligible portion of the approximately $112 trillion in stocks and bonds held by U.S. households [2][7] - Goldman Sachs analysts attribute the low allocation to gold among U.S. investors to the faster growth of investment portfolios compared to gold prices and trading volumes over the past decade [2][7] Group 4: Gold Price Movement - Gold prices surged significantly, breaking the 4280 mark and reaching a seven-week high, with current trading around 4267 [3][8] - The main factors supporting the rise in gold prices include the Federal Reserve's expected 25 basis point rate cut and weaker initial jobless claims data from the U.S. [3][8] - Geopolitical tensions have also contributed to increased demand for gold as a safe-haven asset [3][8] Group 5: Currency Exchange Rates - The USD/JPY pair experienced a slight decline, trading around 155.70, influenced by a weakening dollar index and rising expectations for a December rate hike by the Bank of Japan [4][9] - The USD/CAD pair also saw a downward trend, reaching a 12-week low at approximately 1.3770, primarily due to a declining dollar index and hawkish signals from the Bank of Canada [5][10]

Core Viewpoint - The Future Fund of Australia highlights increasing risks of "more frequent and intense new shocks" to the global economy, prompting a shift in asset allocation towards gold, actively managed stocks, and hedge funds [3][5]. Group 1: Investment Strategies - The Future Fund has raised its allocation to gold and other commodities to provide asymmetric protection against supply-driven inflation and stagflation [5]. - The fund's strategy includes reducing nominal government bond exposure, increasing inflation-linked bonds, and expanding investments in real assets like infrastructure [5]. - The report emphasizes that physical assets, particularly commodities, can offer strong hedging effects during high unexpected inflation periods [5]. Group 2: Global Gold Demand Trends - Global gold demand increased by 1% year-on-year in the first ten months of this year, reaching 3,717 tons, with a 41% rise in value to $384 billion [3]. - Central banks have shown a strong inclination to increase gold reserves, with 47% planning to buy more gold as a strategic tool against geopolitical and financial risks [7]. - In the first three quarters of this year, global central bank gold purchases reached 220 tons, a 28% increase from the previous quarter [7]. Group 3: Future Price Projections - Goldman Sachs projects that gold prices could rise to $4,900 per ounce by the end of 2026, with current spot prices around $4,011 per ounce [3][8]. - Other financial institutions, including Bank of America and Morgan Stanley, have also raised their gold price forecasts for 2026, indicating a bullish outlook for the precious metal [8].