Gold’s big institutional buy-in still to come, silver will follow gold's lead higher – Sprott’s McIntyre

Sprott’s Ryan McIntyre forecasts that institutional demand for gold is still in its early stages, with the next significant wave of inflows yet to come despite recent geopolitical and market headwinds. While gold prices have pulled back sharply since late January amid rising Treasury yields and the Iran conflict, McIntyre argues that these are short-term factors that do not alter the long-term fundamental drivers supportive of gold’s appeal as a portfolio diversifier and inflation hedge. McIntyre highlights the role of rising Treasury yields as an opportunity cost deterrent cautioning near-term demand, as yields have increased 30-40 basis points since January, negatively impacting bondholders. However, he maintains that the looming need for continued government money printing and fiscal instability will ultimately favor gold over bonds in the medium term. He also points out that institutional reluctance has stemmed from a past loss of commodity expertise after the 2015 correction and a preference for familiar asset classes like equities. The ongoing geopolitical tensions in Iran may further suppress silver due to its stronger industrial demand component. Still, gold is positioned to benefit once yield pressures ease and institutional investors rebuild conviction given the metal’s unique role in multi-asset portfolios. Market participants should watch yield trends and any policy shifts ahead of upcoming central bank meetings for cues on gold’s next directional move. Institutional gold demand may pick up sustainably once rate uncertainties dissipate.