New Delhi, June 22 -- Volatility in gold prices has declined and its response to interest rate hikes has become increasingly asymmetric, signalling a deeper, structural shift in the metal's role in global portfolios, said Llama Research in its June edition.

According to the report, gold is no longer being driven purely by speculative flows or short-term rate expectations.

"Volatility in gold has declined. Its reaction to rate hikes is asymmetric. Trust, not yield, is becoming the core driver," the report added.

The report added that the gold which was once viewed as a tactical hedge against short-term uncertainty is increasingly being treated as a structural asset in investment portfolios.

The yellow metal's behaviour post-2020 signal...