Gold Gains Strategic Status Amid Rising Debt Fears

Investors are increasingly viewing gold as a strategic allocation in their portfolios due to growing concerns about government debt levels, according to Christopher Hamilton, head of client solutions at Invesco's Asia Pacific office.

A rise in global yields and a broad-based selloff in the bond market are also driving investors towards gold, said Hamilton. He pointed to resilient economic growth and inflation concerns as key factors pushing up yields.

'We consider gold definitely a fiscal and monetary shock absorber,' Hamilton said. 'I think there's also a much longer-term strategic play for gold in portfolios.'

Invesco's quarterly gold outlook from July noted that despite spiking energy prices boosting inflation and rate hike expectations, central bank demand will still help gold finish 2026 on a positive note.