Perspective on US Fed Decision and its impact on gold by Mr. Colin Shah, MD, Kama Jewelry
Below the Perspective on US Fed Decision and its impact on gold by Mr. Colin Shah, MD, Kama Jewelry
“The steady resilience of gold around the $4080 mark reflects a market balancing two powerful forces – a hawkish monetary policy and an escalating geopolitical risk in the Middle East leading to further uncertainties in global economy. While the US Fed’s firm decision to tackle inflation kept the rate unchanged and dialled back immediate September rate-hike expectations, the underlying safe-haven appeal of precious metal will likely get reignited However, the commitment of US Fed to a strict 2% inflation target with no soft leeway, creates a tough short-term macroeconomic backdrop for bullion.
As we head into the festive season back home followed by holiday season in the West, the RBI Monetary Policy next week along with the US Fed’s decision in September and onwards along with other development at both at a domestic and global level will play a crucial role in defining the performance of the yellow metal, and ultimately, jewellery sales. Given the current scenario, we are still hopeful of robust performance and a gradual stabilization in prices, it remains imperative to stay watchful of real-time developments.”
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