Gold prices now driven by inflation, monetary policy: report

Gold is a shiny metal that many people buy to keep their money safe.

For a long time, people thought gold prices mostly went up when there were wars.

A new report says that is changing.

Now, things like how fast prices are rising, which is called inflation, matter more.

Interest rates and decisions by central banks also matter a lot.

The report comes from a company called Motilal Oswal Financial Services.

It studied the first half of 2026 and found that rising bond yields can push gold prices down.

This can happen even during conflicts between countries.

The report thinks gold might drop a little before going up again.

It expects gold to reach $4,800 per ounce in the overseas markets.

Big factors later will include what the US Federal Reserve says and how much money is available around the world.