Gold price today: Gold’s safe-haven appeal is changing as inflation, interest rates emerge as bigger price drivers

Gold’s traditional safe-haven appeal during geopolitical conflicts appears to be changing, with inflation, interest rates and monetary policy now playing a bigger role in determining bullion prices, according to a report by Motilal Oswal Financial Services Ltd (MOFSL). In its H1 2026 Precious Metals Report, MOFSL said the first half of the year showed that geopolitical tensions alone may no longer be enough to sustain a gold rally.

Investors increasingly assessed conflicts based on their potential impact on inflation, interest rates and monetary policy expectations. “The relationship between war and gold has become increasingly conditional,” Navneet Damani, head of research, commodities at MOFSL, said. According to Damani, markets are now paying less attention to geopolitical headlines themselves and focusing more on how conflicts could affect inflation, real interest rates and expectations around monetary policy.

“Rising bond yields emerged as the key headwind for gold, outweighing traditional safe-haven demand despite elevated geopolitical tensions,” he said.