Rising Gold Prices and Yields Reflect Investor Worries Over Debt Levels, Says Invesco’s Hamilton

Christopher Hamilton of Invesco noted that investors are increasingly viewing gold as a strategic portfolio allocation amid spiraling government debt. In a CNBC interview, he explained that resilient US growth, inflation concerns and fiscal risks are driving global yields higher, while real rates rise alongside a re-emerging term premium. Hamilton described gold as a fiscal and monetary shock absorber and a long-term proxy for confidence in the monetary system. He said investors traditionally treated gold tactically, but now discuss embedding it permanently in strategic asset allocation due to developed-market debt worries. Invesco’s July outlook expects central-bank buying to support gold through 2026 despite its worst quarter since Q2 2013, when prices fell 22.7 %. A WGC survey showed 45 % of central banks plan to raise reserves and 89 % foresee higher global holdings. Analysts stressed gold’s value as a diversifier with no issuer or credit risk.