Gold Prices Will Continue Rising Until Governments Address Debt Burdens

John LaForge, Chief Alternative Strategist at Ned Davis Research, believes that gold's long-term trend remains higher until governments around the world address their mounting debt burdens. In an interview with Kitco News, LaForge stated that the precious metal's price will continue to rise as investors seek safe-haven assets.

The current environment is one of the strongest fundamental backdrops for gold in its history, according to LaForge. He notes that central banks have emerged as a significant source of structural demand, driven by their recognition of the security risks associated with traditional reserve assets.

Governments' enormous expansion of sovereign debt is creating an increasingly powerful tailwind for hard assets like gold. LaForge sees few politically palatable ways out of this situation other than eventually resorting to currency debasement, which would further drive up gold prices.