Gold's Price Surge Doesn't Change Advisors' Views on Strategic Allocation

Advisors are not deterred by gold's recent price surge, saying that record government debt, central bank buying, and inflation risk remain supportive of a strategic allocation to gold.

Aakash Doshi, head of gold strategy at State Street Investment Management in Boston, said the themes driving gold's current cycle remain intact: high US and global government debt, geopolitical fragmentation, steady central bank purchases, resilient Chinese physical demand, and historically elevated stock-bond correlations. Gold has roughly doubled in price over the past few years, with the Federal Reserve turning more hawkish on inflation.

Doshi expects gains to moderate in 2026 and 2027 compared with 2024 and 2025, but still targets $5,000 an ounce by the end of the first quarter of 2027. He recommends a 3% to 10% allocation for most balanced portfolios, though he said 3% to 5% is more realistic for new money entering the asset class today.

Alex Shahidi, co-chief investment officer and senior managing director at Evoke Advisors in Los Angeles, agrees that rising prices alone haven't changed the investment case. Elevated government debt, persistent fiscal deficits, central bank buying, geopolitical uncertainty, and concerns over fiat currency debasement all remain in place, he said.