Gold XAU/USD Outlook Ties to Energy Transition's Slow Fossil Fuel Exit

Historian Jean-Baptiste Fressoz's argument that energy sources accumulate rather than replace one another is gaining traction as fossil fuel consumption holds near record levels despite trillions poured into renewables. For gold XAU/USD, this dynamic matters because it points to prolonged energy-cost pressure rather than a swift transition-driven disinflation.

Simultaneously, LNG Canada's FID to double capacity to 28 mtpa, alongside Cedar LNG and Woodfibre builds, reflects continued heavy capital commitment to traditional energy infrastructure. Combined with AI-driven electricity demand straining grids, these overlapping capex waves suggest inflation risks remain structurally elevated — a backdrop that historically supports gold's positioning as a portfolio hedge against currency and purchasing-power erosion.