SocGen Bullish on Gold as Central Banks Lag Behind Inflation

Société Générale (SocGen) remains bullish on gold prices heading into Q4, despite central banks increasing interest rate hikes. The French bank's analysts say central banks are unlikely to get ahead of inflation, which means there is still a solid reason to own gold.

The analysts maintain a 10% position in gold and 10% in broader commodities, unchanged from the third quarter. They increased their equity allocation to 58% from 55% while reducing their exposure to government bonds to 12% from 15%. '2026 YTD has been a year of sharp divergence across asset classes, with equities and commodities performing well while bonds have struggled.'

The bank's multi-asset portfolio sees gold playing a significant role as it experiences a revival of the debasement trade. Geopolitical fragmentation and growing concerns about U.S. fiscal and currency credibility drive greater diversification away from traditional reserve assets.