Gold Price Poised to Break Out: Sprott Sees Inflation and Political Risk Driving Bullish Momentum

Gold Price Poised to Break Out Due to Inflation and Policy Risks

Gold prices could climb significantly higher in the coming months, according to Sprott Asset Management. Inflation worries loom large as post-tariff costs start reaching consumers. Sprott strategist Paul Wong expects elevated prices of goods will drive demand for gold as a hedge. Meanwhile, political turbulence and threats to Federal Reserve independence amplify market risks. These factors combine to support a breakout in gold price levels.

Central Bank Moves, Dollar Weakness, and Gold Price Poised to Break Out

Gold also benefits from expectations of U.S. interest rate cuts. Wong highlights that falling real interest rates make non-yielding assets like gold more attractive. Moreover, pressure mounts on the U.S. dollar as fiscal deficits grow and global trust loosens. As a result, central banks increase gold purchases, reinforcing bullish sentiment. Similarly, safe-haven demand surges under political instability and weakening dollar strength.

Meanwhile, Sprott sees technical signals align with gold’s upward trajectory. The gold consolidation period appears to end, as price breaks above resistance levels. The steepening yield curve—falling short-term yields and rising long-term yields—signals potential monetary easing ahead. As such, investors eye gold’s record-high zones with growing confidence.

SuperMetalPrice Commentary:

Sprott’s outlook underlines a critical shift in how markets price gold: inflation, policy risk, and geopolitical uncertainty now dominate narratives. Gold is no longer just an inflation hedge; it plays a broader role in portfolios amid systemic risks. Going forward, watch for U.S. interest rate announcements, dollar trends, and central bank acquisition patterns. These will help define how far gold prices can rise in this breakout phase.