Gold Holds Firm Amid Rate Hikes and Dollar Strength

Despite its underperformance this year, gold's long-term thesis remains intact, say analysts. The metal has been pressured by rising US interest rates and a stronger dollar, but these headwinds are seen as temporary setbacks.

The ongoing physical gold purchases in China provide structural demand support, even if the global paper gold markets dwarf physical flows.

With US fiscal deficits projected to require sustained inflation, gold remains a compelling long-term portfolio hedge against fiat currency debasement.