Quote on Commodities Commentary 21st August 2026 by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Below the Quote on Commodities Commentary 21st August 2026 by Manav Modi Commodities Analyst, Motilal Oswal Financial Services Ltd
Gold prices traded near their highest levels in more than two-and-a-half months as investors balanced support from lower bond yields against renewed concerns over inflation and rising fiscal risks. The metal continued to hold above $4,500 after the U.S. Treasury’s decision to double long-dated bond buyback operations triggered a sharp rally in Treasuries and a decline in yields earlier this week.
However, the relief proved temporary, with the 30-year Treasury yield rebounding as concerns resurfaced over the sustainability of U.S. government finances after total federal debt surpassed $40 trillion. Persistent fiscal deficits and rising interest costs have increasingly strengthened gold’s appeal as a hedge against currency debasement and sovereign debt risks.
Meanwhile, markets continued to assess the Federal Reserve’s July meeting minutes, which showed many policymakers still see further rate hikes as likely if inflation fails to moderate. Officials also highlighted the Middle East conflict as a key upside risk to inflation through higher energy prices and potential supply-chain disruptions. Oil prices remained firm amid ongoing tensions around the Strait of Hormuz, reinforcing inflation concerns.
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