Insights on gold prices amidst uncertainty!

Colin Shah, MD, Kama Jewelry said on, Gold Outlook in the context of post US inflation data! He said, “The recent US inflation numbers turning out sticky have led to gold prices inching higher, thereby slashing the chances of a rate cut by the US Fed.

This uncertainty will directly reflect in further volatility when it comes to gold prices in the international market. Rise in inflation can have a direct impact on Indian gold exports as The USA is one of the largest importing markets after China.

This along with a higher US Dollar index will lead to a further lead to spike in gold rates, inching closer to the INR 70k mark.”

In the row, Sachin Kothari, Director at Augmont Gold for All, focussed on Gold Prices in India! He said, “Gold is trading at record high prices around $2200 (~Rs 66000) on strong demand from China, as Chinese investors are hedging against potential economic instability amid the commercial real estate crisis in their country.

Moreover, lower growth concerns in other economies around the world is also supporting the prices. There are several other reasons why gold prices have increased in the United States. Some investors are trying to hedge against the possibility of higher-than-expected inflation, realign their portfolios after the stock market boom, and protect themselves from geopolitical instability. Concerns about wars between Russia and Ukraine and Israel and Hamas, as well as the upcoming presidential election in November, are among the concerns that investors have. As gold prices have run up too fast in the last week, we could see a bit of correction and retracement up to $2155 (~Rs 65000) and $2125 (~Rs 64400).”

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