Gold’s appeal lies not just in crisis-driven uncertainties but in its growing utility as a trusted store of value in times characterised by currency uncertainty, geopolitical risk, and weakening confidence in fiat regimes.
Gold Rate Outlook
Carsten Menke, an analyst at Julius Baer said, “We still see sound demand from safe-haven seekers and central banks, which should provide sound support to gold prices on current levels”, as per a Reuters report.
Meanwhile, volatility in gold prices has declined and its response to interest rate hikes has become increasingly asymmetric, signalling a deeper, structural shift in the metal’s role in global portfolios, said Llama Research in its June edition, ANI reported.
According to the report, gold is no longer being driven purely by speculative flows or short-term rate expectations. “Volatility in gold has declined. Its reaction to rate hikes is asymmetric. Trust, not yield, is becoming the core driver,” the report added.The report added that the gold which was once viewed as a tactical hedge against short-term uncertainty is increasingly being treated as a structural asset in investment portfolios.The yellow metal’s behaviour post-2020 signals a fundamental shift in how global investors perceive its role which is less like a volatile commodity and more like a stable, reserve-like asset, the report added.
FAQs
Q1. Why is Gold important?
A1. Gold is traditionally considered a hedge during times of political and economic uncertainty.
Q2. What was last price of Gold?
A2. Spot gold was little changed at $3,369.63 an ounce, its lowest since June 12, while the index was down 1.8 per cent for the week. US gold futures shed 0.7 per cent to $3,385.50.
