The World Gold Council’s mid-year outlook suggests that current prices are well-aligned with a global environment of moderate growth and cooling inflation. While the metal remains one of the top performers over the past year, its recent volatility—which spiked above 50% during the onset of the US–Iran conflict—has since tempered to below 30%. Analysts Juan Carlos Artigas, Taylor Burnette, and Dr. Fergal O'Connor note that gold typically sees its rebounds during Asian trading hours, while pullbacks frequently occur during US sessions, highlighting a shift in influence toward Asian markets.

For the remainder of 2026, the potential for a rally depends on clear catalysts: worsening economic conditions, renewed geopolitical shocks, or a pivot toward lower interest rates. Conversely, a combination of resilient growth and rising yields could push prices lower. In such a scenario, the Council anticipates that any decline exceeding 10% would likely be cushioned by bargain-hunting investors. Central bank demand remains a critical pillar, though the pace of future purchases continues to be a subject of debate. Meanwhile, India’s market faces unique pressure; the government’s recent move to hike import duties from 6% to 15% is expected to cut local demand for jewelry and bullion by up to 60 tonnes, adding another layer of uncertainty to the global price trajectory.