SocGen Urges Return to Bullish Gold Stance

Société Générale analysts advise turning bullish on gold again as the metal tests resistance at $4,500 per ounce. After cutting positions earlier in the year, the bank now sees an attractive risk-reward profile following normalized volatility and recovered speculative positioning. Structural factors including central bank purchases, dedollarization trends and geopolitical risks are providing a higher price floor despite elevated rates and a stronger dollar. The bank stays strategically bullish, treating gold as a hedge against monetary uncertainty. In its base case SocGen expects Fed rates to stay unchanged through 2027, though one hike remains possible in September or December. Persistent central bank demand, notably from China, continues to anchor the market.