Gold Falls To $3,600 If Yields Do THIS Next | Nicky Shiels

Gold maintains its resilience as a strategic asset despite significant headwinds from rising real interest rates and a strong U.S. dollar. While historically inversely correlated with yields, gold’s performance since 2022 reflects a shift driven by persistent central bank accumulation and physical demand. Nicky Shiels, Head of Research and Metals Strategy at MKS PAMP, notes that although current market models indicate gold trades at a premium above fair value, this "debasement premium" remains justified by unsustainable fiscal trajectories across G10 nations and ongoing de-dollarization efforts. Investors should view gold as a hedge against fiat currency volatility rather than a simple inflation proxy. While tactical sell-offs may occur during periods of extreme financial tightening or risk-asset liquidations, the long-term structural case for gold persists as a necessary diversification tool against systemic sovereign debt risks.