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Below the Perspective on US Fed Announcement by Mr. Colin Shah, MD, Kama Jewelry

The US Fed's decision to keep rates unchanged, while indicating a possibility of further tightening later in the year, has led to a mixed outlook for gold. Typically, such scenarios weigh heavily on non-yielding assets like gold due to the natural strengthening of the US Dollar, thus increasing the opportunity of holding bullion. Parallelly, the reported de-escalation of tension between the US and Iran is likely to have a contrasting effect, reflecting as a minor cooldown in the rates.

Having said that, the ongoing discussions between the two countries and their outcome will be a major determinant in influencing gold prices. Despite the long-term fluctuations, we expect prices to remain largely rangebound with intermittent spikes in the short term, while the long-term outlook for gold remains constructive, given the endurance of the yellow metal during troubled times.”

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