HSBC Maintains Bullish Stance on Gold Despite 2026 Market Volatility

HSBC Global Chief Investment Officer Willem Sels and Global Head of Wealth Insights Lucia Ku argue that U.S. Treasury yields currently serve as the primary driver for gold, as higher rates increase the opportunity cost of holding non-yielding assets. While the metal has recently struggled to act as a traditional hedge against equity market volatility, the firm maintains an overweight position. This confidence is underpinned by consistent central bank purchases and steady inflows into exchange-traded funds, which provide a floor for the asset even during periods of liquidation.

James Steel, Chief Precious Metals Analyst at HSBC, highlights that institutional demand remains particularly robust, especially in markets like China and India, where regulatory reforms have expanded the ability of insurance companies and asset managers to accumulate bullion. Steel rejects the notion that gold has failed as a safe-haven asset, describing the recent sell-offs as a rational response to liquidity needs within the broader financial system. As global de-dollarization trends persist, HSBC analysts expect these structural supports to outweigh short-term pressures, reinforcing gold's role as a unique, liquid hard asset in increasingly correlated investment portfolios.