Expert quote on Gold Holding Above $4,000 Amid Easing Geopolitical Tensions by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Below the Expert quote on Gold Holding Above $4,000 Amid Easing Geopolitical Tensions by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
“Gold continues to hold around $4,000 despite easing geopolitical tensions, supported by strong investment and central-bank demand, fiscal concerns and some moderation in Treasury yields. Importantly, gold and crude do not have a consistent direct correlation. Geopolitical tensions can initially lift both through safe-haven demand and supply-risk premiums, but sustained higher crude prices can raise inflation expectations, push yields higher and strengthen expectations of tighter Fed policy, eventually weighing on non-yielding gold. Conversely, falling crude can reduce inflation concerns and rate-hike expectations, allowing yields to ease and supporting bullion even as geopolitical risk premiums decline.
Therefore, gold’s relationship with crude largely operates indirectly through inflation, interest rates, real yields and the dollar. Psychological barrier, ETF and central buying and overall sentiment before Fed meeting this week and mid-term election next week is keeping market participants on edge”
Above views are of the author and not of the website kindly read disclaimer
