Market risk aversion is rising. How to increase precious metal allocation through Gate Finance?

“The recent price movements have forced us to recalibrate Bitcoin price forecasts.” Standard Chartered Bank’s Global Head of Digital Asset Research, Geoff Kendrick, expressed cautious optimism about the crypto market in a recent report. His view is not an isolated one; as geopolitical tensions and global economic uncertainties increase, market risk aversion is quietly rising. Analysts at Gate generally believe that precious metals such as gold and silver, as well as strategic non-ferrous metals like copper and lithium, may see gains in the near future.

Market Sentiment Shift

The global economy is facing complex challenges, with political and economic tensions intensifying in multiple regions. Events such as the Russia-Ukraine conflict, the Israel-Hamas conflict, disputes between the US and Venezuela, and cooling relations in East Asia are having a profound impact on global capital flows.

Traditionally considered safe-haven assets, Bitcoin’s correlation with the US stock market has significantly increased after its spot ETF was integrated into the US equities system, making it behave more like an “asset under the US stock market’s umbrella.” Standard Chartered Bank has nearly cut its Bitcoin price forecasts for the next few years across the board, especially the largest declines expected between 2026 and 2028.

The crypto world is becoming more unpredictable. Galaxy’s research director Alex Thorn describes the market outlook for 2026 as “too chaotic and unpredictable.” Fundstrat analysts also warn that Bitcoin could fall into the $60,000 to $65,000 range.

New Focus on Safe-Haven Assets

Against this backdrop, traditional safe-haven assets are regaining attention. Wu Long, President of the Zun Cai Gold Industry Research Institute, pointed out: “Due to global economic uncertainties and geopolitical risks, gold, as a traditional safe-haven asset, is expected to maintain relative resilience through 2025.”

Precious metals like gold and strategic resources are demonstrating stronger safe-haven properties under the current global political and economic landscape. Traditional financial markets have already taken note of this trend. Several financial institutions have recently issued structured financial products linked to gold. These products generally adopt a “fixed income foundation + options enhancement” model: allocating most funds to fixed income assets while embedding a small amount into gold-related options to capture the upside potential of gold prices.

Gate’s Precious Metals Investment Options

As demand for safe-haven assets increases, Gate offers users a variety of related investment options in precious metals. These products are designed to balance risk and return, catering to investors with different risk preferences.

Structured products are an important part of Gate’s offerings. Similar to traditional financial market “shark fin” gold investment products, these products set barrier prices, determining final returns based on the relationship between gold prices and the barrier. If market movements align with expectations, investors may achieve returns exceeding traditional investments.

Gate also offers “Fixed Income +” product portfolios, which use fixed income assets as a stable core to generate steady returns, supplemented by a certain proportion of gold and other commodities to enhance yields. In addition to gold, Gate provides investment options related to silver, platinum, and other precious metals, as well as strategic non-ferrous metals. These asset combinations help diversify risk and provide more comprehensive safe-haven strategies.

Adjusting Allocation Strategies

In a constantly changing market environment, systematic approaches are needed to adjust investment allocations. It is recommended to allocate 20% to 30% of assets in gold and other precious metals-related products as defensive assets.

For investors seeking higher returns, structured precious metals products in Gate’s offerings are worth attention. For example, a bullish strategy linked to gold options invests at least 80% of funds in fixed income assets, with the remaining allocated to gold options. Kendrick notes that for Bitcoin to continue rising, it will mainly depend on ETF capital inflows, while corporate Bitcoin purchases are “coming to an end.” Changes in market liquidity and investor risk appetite are adding more uncertainty to the crypto market.

Gate also offers a “DCA + Lending” combined strategy. During market volatility, investors can gradually build their precious metals positions through dollar-cost averaging, while utilizing low-volatility periods to earn stable income via lending features, creating a balanced investment approach.

Risks and Opportunities

Although gold and other precious metals perform well in safe-haven environments, investors should remain vigilant about associated risks. Wu Long pointed out: “Price volatility risk is the primary concern. Currently, gold prices are at historical highs, and shifts in Federal Reserve monetary policy and the US dollar index could trigger technical corrections in gold prices.” Liquidity risks for gold investment products should not be overlooked either. Physical gold buyback channels are limited, and the spread can exceed 100 yuan per gram. While gold ETFs are more liquid, they may trade at a discount during market panic.

Gate manages these risks through multiple mechanisms: providing transparent product structures, clearly indicating all fees and potential loss limits, and employing strict risk management frameworks to select underlying assets.

Diversification remains key to hedging against uncertainty. Investors should allocate part of their portfolio to Gate’s precious metals products while maintaining some exposure to cryptocurrencies and other high-growth assets to achieve a balanced investment mix.

On the Gate platform, one investor converted 30% of their crypto assets into structured products linked to precious metals, which reduced their maximum single-day drawdown during market corrections by 15%. Meanwhile, they retained 40% in Bitcoin and Ethereum, valued at $70,743.1 and $2,091.17 respectively, according to the latest data. A line from the Standard Chartered Bank research report has become reality: “Market concerns over rising inflation and fewer Federal Reserve rate cuts in 2026 are also putting pressure on prices.” Investors who adjusted their allocations early are already finding more stable anchors amid market uncertainty.