Hua Seng HengPrivate▲ Positive
Monetaryrelevance
Hua Seng Heng's assessment of debt-driven gold rally supports its business.
Hua Seng Heng Gold Futures said investor concerns are shifting from the timing of Federal Reserve rate cuts to the question of how the US government will manage its rising debt and interest burden. The July budget deficit stood at 432 billion US dollars, bringing the cumulative deficit for the first 10 months of fiscal year 2026 to 1.799 trillion US dollars, while US government debt is approaching 40 trillion US dollars. Hua Seng Heng assesses that if demand at US Treasury auctions declines or investors demand higher yields, the risk premium will rise, supporting gold prices over the medium to long term. Gold is therefore viewed as a diversification asset that carries no government or corporate debt burden and does not depend on the issuer's ability to repay.
Hua Seng Heng's assessment of debt-driven gold rally supports its business.