Gold Remains Strategic Hedge Amid Persistent Inflation Risks

Société Générale analysts are reaffirming their bullish stance on gold, positioning it as a strategic hedge against inflation risks and policy uncertainty.

The French bank's latest cross-asset strategy report highlights gold's ability to withstand a stronger U.S. dollar and higher interest rates, making it an attractive asset for investors facing persistent inflation, geopolitical instability, and growing policy uncertainty.

Gold is one of seven assets identified by the analysts as a hedge against inflation risks, alongside inflation-linked bonds, copper, select equities, private credit, and others.

The bank's broader strategy includes increasing its commodity exposure to 10% from 8%, with gold specifically positioned as a hedge against policy uncertainty.