Now Reading: Inflation, monetary policy now steer gold prices more than war: Report
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Inflation, monetary policy now steer gold prices more than war: Report
Inflation, monetary policy now steer gold prices more than war: Report
A Motilal Oswal Financial Services report says inflation, interest rates, and monetary policy now influence gold prices more than geopolitical conflicts. In the first half of 2026, rising bond yields acted as…
The Story in Brief
A Motilal Oswal Financial Services report says inflation, interest rates, and monetary policy now influence gold prices more than geopolitical conflicts. In the first half of 2026, rising bond yields acted as a stronger headwind than traditional safe-haven demand, even during elevated tensions. The report forecasts that gold could reach $4,800 per ounce overseas and Rs 1.68 lakh per 10 grams domestically, with a possible 6-8 per cent correction before that. It expects inflation trends, Federal Reserve communication, and global liquidity to remain key drivers in the second half of the year. Central bank buying and ETF flows continue to support the long-term outlook.
The Indian Opinion
Narratives that gold is a simple safe haven during wars miss the point. The Motilal Oswal report shows markets now judge conflicts by their inflationary and interest-rate fallout, not by the headlines. Investors who buy gold on every geopolitical scare risk losses when bond yields rise. The real test will come at the next Federal Reserve meeting: if gold falls despite a fresh crisis, the old rule is dead.
Source: rediff.com
This story was synthesised by AI from the source linked above.
