What happened
Long-dated government bond yields spiked again as investors focused on heavy deficits and persistent issuance. The U.S. 30-year touched the 5 percent area while similar moves showed up across Europe and Japan. High long-term borrowing costs have become a global theme.
Why this supports gold
When the market questions fiscal sustainability and long bonds wobble investors look for stores of value that are not tied to a single issuer. The result is steady safe-haven demand and fresh record prints for gold.
What to watch
Debt auctions and budget headlines matter. If issuance stays heavy and buyers demand more yield the safe-haven bid for bullion should continue.
Client takeaway
Fiscal nerves and long-bond volatility are not one-day stories. Allocate with the expectation that these pressures can persist.
