Rising Rates Amid Softening Labor Market Amplify Fiscal Strain and Bullish Case for Gold

U.S. interest rates are climbing even as the domestic labor market begins to soften.
This dynamic indicates that continuing to battle inflation through rate hikes is increasingly damaging employment while worsening the broader U.S. fiscal position.
Over the long term, elevated interest rates risk inflicting greater economic damage than inflation itself, reinforcing a macroeconomic thesis that investors remain underallocated to gold.