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State Street Gold Fund Commentary Q3 2026 Update

In Q3 2026, the State Street Gold Fund delivered a net return of 3.1%, as gold rebounded from its Q2 correction, rising 3.4% in AUD terms (3.7% in USD). Despite headwinds from higher US bond yields and further monetary tightening, gold remained resilient, supported by renewed investor demand, continued central bank buying and signs of moderating US economic growth. While elevated US real yields and a firm US dollar may continue to drive near-term volatility, gold's long-term investment case remains underpinned by its diversification benefits and role as a hedge against macroeconomic uncertainty.

19 October 2026

Robin Tsui, CPA, CAIA, CA

APAC Gold Strategist

Gold began the quarter consolidating around the US$4,000/oz level following Q2's sharp correction. Sentiment improved through August as softer-than-expected US labour market and inflation data eased concerns about further policy tightening and encouraged renewed allocations to defensive assets. Continued central bank demand, including further purchases by the People's Bank of China, provided additional support. Although gold came under pressure in September as long-dated US Treasury yields rose to multi-decade highs and the Federal Reserve raised interest rates, it nevertheless finished the quarter at US$4,157/oz, delivering a gain of 3.7%. Gold's positive performance despite rising yields highlights the strength of underlying demand from both official-sector and investment buyers.

In Australia, the Reserve Bank of Australia raised the cash rate by 25 basis points to 4.60% in September, citing persistent inflationary pressures, higher energy costs and ongoing capacity constraints in the economy. Higher interest rates typically present a headwind for non-yielding assets such as gold by increasing the opportunity cost of holding bullion. However, persistent inflation, moderating economic growth, elevated global debt levels and ongoing geopolitical tensions continued to support gold's appeal as a defensive portfolio allocation. At the same time, growing concerns around fiscal sustainability in several major economies reinforced the strategic case for holding gold as a store of value and portfolio diversifier.

Gold may experience periods of consolidation as markets continue to navigate evolving monetary policy expectations, inflation dynamics and macroeconomic uncertainty. However, the longer-term outlook remains constructive, supported by continued central bank buying, investor demand for diversification, geopolitical risks and concerns around fiscal sustainability. These structural drivers should continue to support gold's role as a strategic portfolio allocation and an effective hedge against macroeconomic and market uncertainty.

Disclosure

Issued by State Street Global Advisors, Australia Services Limited (AFSL Number 274900, ABN 16 108 671 441) ("SSGA, ASL"). Registered office: Level 14, 420 George Street, Sydney, NSW 2000, Australia · Telephone: 612 9240-7600 · Web: www.statestreet.com/im.

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Diversification does not ensure a profit or guarantee against loss. Investing in commodities entail significant risk and is not appropriate for all investors. There are risks associated with investing in Real Assets and the Real Assets sector, including real estate, precious metals and natural resources. Investments can be significantly affected by events relating to these industries. Past performance is not a reliable indicator of future performance.

This material is general information only and does not take into account your individual objectives, financial situation or needs and you should consider whether it is appropriate for you. You should seek professional advice and consider the Product Disclosure Statement, available at www.statestreet.com/im, before deciding whether to acquire or continue to hold the Funds. Target Market Determinations are also available at www.statestreet.com/im. This material should not be considered a solicitation to buy or sell a financial product or security.

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