LSEG research lead Debajit Saha argues gold’s bull case endures despite the rate-hike headwinds pressuring the metal.
Hawkish inflation remarks from the Fed chair at Jackson Hole fuelled speculation over a September rate hike — a headwind for non-yielding assets — while renewed military escalation in the Strait of Hormuz pushed energy prices higher and reinforced safe-haven demand.
Saha also flags long-dated Japanese government bond yields rising to 3% for the first time in 30 years, raising domino-effect fears across the global economy. His core case: rising debt, fiscal constraints and geopolitical risk keep gold relevant as a portfolio stabiliser.
The analysis is published in the latest issue of the LBMA’s Alchemist magazine.
