Fed trapped between inflation and debt crisis, and gold wins either way

Sprott President Ryan McIntyre tells Kitco that the Fed is trapped between containing inflation and avoiding a sovereign-debt crisis, a dynamic that ultimately favors gold. While recent shifts in rate expectations and higher real yields have pressured bullion near-term, McIntyre argues that rising U.S. debt (above 100% of GDP) and worsening fiscal trajectories make gold an attractive hedge. He warns higher yields would hurt equities (S&P 500) by increasing discount rates, and says institutional allocations to precious metals remain below prior peaks, presenting a tactical buying opportunity during corrections. Overall, McIntyre frames gold as a long-term winner regardless of the Fed’s policy path.