Gold prices have declined in volatility and its reaction to the increase of interest rate has become increasingly asymmetric, giving a deep, structural change in the role of a metal in the global portfolio, indicating the Lama Research in its June version.
According to the report, gold is no longer being operated purely by speculative flow or short -term rate expectations.
The report states that gold has declined in instability.
The report states that gold that was once seen as a strategic hedge against short -term uncertainty is considered as a structural property in the rapid investment portfolio.
The report states that Yellow Metal behavior Post -2020 indicates a fundamental change of how global investors see their role, which is low like an unstable object and is a stable, reserved -like property.
Traditionally, the growing actual bond yields had an inverted correlation with gold prices. The report stated that the relationship has later become weak in the Panduk landscape, saying that despite the increase in yields, gold has managed to defy traditional financial argument and underline the change in investor’s spirit.
“Gold is behaving more like a bond than a condition. It is becoming a structural allocation, not only a strategic defense,” Lama Research said.
Gold appeal is not only in crisis-operated uncertainties, but also in its growing utility as a reliable store of value to weaken the confidence in currency uncertainty, geopolitical risk and Fiat regime.
The report states that the central banks of emerging markets are constantly buying gold in view of increasing geopolitical tensions and US dollar weapons.
Gold prices in India violated the 10-gram mark to Rs 1 lakh to reach a high level earlier this week. To date, the price of gold is trading at 99,096 for 10 grams on the Multi Commodity Exchange (MCX). (AI)
