Gold Gains for Third Session, Inflation Reports in Focus
MOFSL said tariffs, bond yields and Fed policy now matter more than conflict headlines, with gold facing a 6% to 8% correction, analysts said.
- Motilal Oswal Financial Services Ltd reported that inflation and interest rates have replaced geopolitical conflicts as the primary drivers of gold prices, with investors now assessing conflicts through their monetary policy impact.
- Rising bond yields have become the key headwind for bullion, according to Navneet Damani, Head of Research, Commodities at MOFSL. "H1 2026 demonstrated that the relationship between war and gold has become increasingly conditional," Damani said.
- Weak July job market data showing 23,000 jobs lost on Friday drove markets to downgrade U.S. Federal Reserve rate hike expectations, boosting bullion's appeal since gold yields no interest for investors.
- MOFSL expects gold to retain medium-term strength, with a potential 6-8% correction before moving toward $4,800 per ounce and potentially exceeding $5,500 over a 12-15 month horizon.
- Commodities Analyst Manav Modi at MOFSL noted that "inflation trajectory, Fed communication, global liquidity conditions, central bank demand and investment flows are expected to remain the key variables for gold and silver during H2 2026.
31 Articles
31 Articles
The prices of future gold contracts closed the day high, accelerating the gains after U.S. consumer inflation data in line with expected to reduce interest-rate bets by the Federal Reserve (Fed), although the odds are still high, amidst high oil prices and the risk of higher inflationary pressure. In Comex, New York Mercantile Exchange (Nymex) metal division, the gold with delivery scheduled for October advanced 0.59%, to $4,434.3 per ounce. The…
Gold nears 10-week high ahead of US inflation data. Gold prices rose nearly 1% on Wednesday, supported by reduced bets on a Federal Reserve interest rate hike next month, as investors awaited inflation data later in the day that could reshape monetary policy expectations.
Gold rebounds towards 10-week high as markets brace for US inflation data
Gold prices rose on Wednesday, supported by reduced bets on Federal Reserve tightening next month as investors awaited key US inflation data that could reshape policy expectations. Spot gold gained 0.6 per cent to $4,391.82 per ounce by 0535 GMT. US gold futures for December delivery rose 0.2pc to $4,451.90. Bullion climbed to a 10-week high on Tuesday before hitting technical resistance at the 100-day moving average around $4,387 and closing lo…
Sydney Morning Herald
Gold is glittering again – but that’s not necessarily good news
Renewed fears of inflation in the US, global financial vulnerabilities and the AI hype have driven a sharp rise in the gold price. That signals risky times ahead.
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