Why gold prices could keep rising despite high US yields and interest rates - The Straits Times

AI desk brief

Gold is seen staying supported into 2027 despite elevated US yields and rates, with the article citing central bank buying, fiscal concerns around US debt, and geopolitical risk as the main offsets to higher opportunity costs. Spot gold was around US$4,360/oz on Sept. 21 after an intraday peak of US$5,594.82/oz in January and a June low near US$3,942/oz; forecasts cited range up to US$5,400/oz by Q3 2027.

The key support pillar remains official-sector demand: central banks bought 289t in Q2 2026, are projected to buy 700-900t for the year, and the PBoC bought more than 20t in August for a 22nd straight month. Investor demand also remains firm, with WGC data showing US$18bn added to gold ETFs in August, while several market participants expect the Fed’s latest 25bp hike to have limited follow-through on prices.