Gold particularly attractive despite recent declines amid geopolitical headwinds – BNP Paribas Wealth

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Edmund Shing, global chief investment officer for BNP Paribas Wealth Management, is urging investors to stay calm amid volatile market conditions, advising them to “take a deep breath” and focus on diversification opportunities rather than making reactive trades.

In an interview with CNBC, Shing pointed to gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) as a particularly attractive asset, noting that despite recent price declines, BNP Paribas maintains a 12-month price target of $5,500 per ounce—substantial upside from the current level of approximately $4,750.

The wealth management executive cautioned against knee-jerk reactions to market swings driven by headlines, political messaging, and misinformation.

“We always advise our clients not to panic, not to panic buy or panic sell, and that they should be thinking about trying to take a longer-term perspective,” Shing said.

He warned that fixating on the latest trading developments or messages from President Donald Trump creates unnecessary volatility and can lead investors to “change course too dramatically.”

Gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) remains a cornerstone of Shing’s diversification strategy despite its recent pullback following strong performance in 2024 and 2025.

He emphasized that the underlying fundamentals supporting gold prices remain intact, describing it as “a diversifying asset in a portfolio that requires diversification.”

In an environment of elevated inflation, Shing argued, commodities and gold in particular serve as essential portfolio components.

The BNP Paribas CIO stressed that traditional portfolio construction relying solely on stocks and bonds is no longer sufficient.

Bonds have failed to provide their typical hedging function during recent market stress, he noted, making it essential for investors to seek alternative assets to protect their portfolios.

Shing identified geopolitical factors as critical near-term risks, particularly the status of the Strait of Hormuz. The disruption to global supplies of oil, gas, fertilizer, and aluminum has significant implications for growth and inflation, he said, making it essential for the ceasefire to hold and maritime traffic to resume.

Looking beyond immediate concerns, Shing highlighted energy security as a compelling long-term investment theme.

Gold and Gold Miner ETFs: (GLD [https://seekingalpha.com/symbol/GLD]), (IAU [https://seekingalpha.com/symbol/IAU]), (SGOL [https://seekingalpha.com/symbol/SGOL]), (OUNZ [https://seekingalpha.com/symbol/OUNZ]), (BAR [https://seekingalpha.com/symbol/BAR]), (GDX [https://seekingalpha.com/symbol/GDX]), (GDXJ [https://seekingalpha.com/symbol/GDXJ]), (NUGT [https://seekingalpha.com/symbol/NUGT]), (RING [https://seekingalpha.com/symbol/RING]), and (DUST [https://seekingalpha.com/symbol/DUST]).

Energy ETFs: (XLE [https://seekingalpha.com/symbol/XLE]), (AMLP [https://seekingalpha.com/symbol/AMLP]), (VDE [https://seekingalpha.com/symbol/VDE]), (XOP [https://seekingalpha.com/symbol/XOP]), (OIH [https://seekingalpha.com/symbol/OIH]), and (IXC [https://seekingalpha.com/symbol/IXC]).

MORE ON GOLD SPOT PRICE

* Commodities: Oil Supported By Ongoing Supply Risks [https://seekingalpha.com/article/4889726-commodities-oil-supported-ongoing-supply-risks]
* Gold ETF Flows: March 2026 [https://seekingalpha.com/article/4889557-gold-etf-flows-march-2026]
* Commodities: Hormuz Remains Blocked For Now [https://seekingalpha.com/article/4889499-commodities-hormuz-remains-blocked-for-now]
* Gold, silver surge to 3-week highs as Iran ceasefire sends dollar & oil plunging [https://seekingalpha.com/news/4572855-gold-silver-surge-to-3-week-highs-as-iran-ceasefire-sends-dollar-oil-plunging]
* Apollo breaks down gold’s surge and sudden pullback [https://seekingalpha.com/news/4572678-apollo-breaks-down-gold-s-surge-and-sudden-pullback]