Gold set to stay underpinned going into next year – Credit Agricole

Credit Agricole underscores four key drivers to the gold rally this year and argues a case for the precious metal to stay supported at least in the first half of 2026. The four main factors helping to boost gold prices this year are:Gold use as a currency debasement hedge i.e. investors seeking protection against inflation and fiscal concerns in the likes of the US, Japan, and EuropeSafe haven demand i.e. gold becoming preferred amid loss of appeal in traditional safety assets such as the Japanese yenCentral bank diversification i.e. central banks across the globe, especially emerging markets, are continuing to increase their gold reserves while at the same time reducing their exposure to the dollar (China obviously one of the bigger names here)Geopolitical risks i.e. rising policy instability across the globe, making for defensive flows alongside stagflation risks growing in many major economiesGiven the above drivers, Credit Agricole highlights that gold will continue to stay supported with the Fed set to continue easing further and as fiscal and political risks remain across the globe. That should keep the precious metal bid in the first half of next year, though the momentum will shift away from physical demand and turn more towards real yields and the US dollar outlook.That as central bank gold holdings are getting close to all-time highs, which could signal that physical demand may be starting to run into some limitations down the road.
This article was written by Justin Low at investinglive.com.

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