Institutional Players Pivot to Physical Gold: CMC Markets Eyes Singapore Expansion Amid Macro Uncertainty

Amidst a backdrop of persistent global volatility, financial intermediaries are increasingly integrating physical assets into their service offerings. CMC Markets has signaled a strategic shift by pursuing regulatory approval to operate as a dealer in the physical precious metals market in Singapore, a move indicative of broader institutional demand for hard assets.

Strategic Expansion into Bullion

The brokerage firm is currently seeking permissions under Singapore's Precious Stones and Precious Metals Act. This regulatory clearance would enable the firm to facilitate the purchase, sale, and custody of physical bullion.

Crucially, this initiative aims to integrate physical holdings into client trading strategies. The firm indicates that gold holdings could potentially be utilized within margin and collateral structures, bridging the gap between cash equities, OTC derivatives, and physical commodities. This suggests a growing trend where investors seek to leverage tangible assets against derivative exposure to manage risk during periods of market stress.

Macro Drivers and Sovereign Buying

The push toward physical metals is underpinned by a complex macroeconomic environment. Gold prices continue to be sensitive to shifting interest rate expectations, currency fluctuations, and geopolitical escalations.

Industry participants note that Central Bank activity remains a primary pillar of support for the metal. Sustained purchasing by sovereign institutions has tightened the supply-demand dynamic, reinforcing golds status as a critical store of value despite the headwinds of high nominal yields in fiat currencies.

Divergent 2026 Forecasts

Looking ahead, market sentiment regarding gold's medium-term trajectory is sharply divided.

• Bullish Case: Citing the source text, some major financial institutions have projected aggressive year-end 2026 targets, with figures potentially reaching above $6,000 per ounce. These projections rely heavily on continued central bank accumulation and a structural flight to safety.
• Bearish/Neutral Case: Conversely, other forecasters anticipate limited potential for upside or even modest declines, arguing that current valuations may already price in significant risk premiums.

This divergence highlights the uncertainty facing Forex and commodity traders, as the interplay between monetary policy and safe-haven demand continues to drive volatility in XAU/USD.