Quote on RBI's decision to raise the repo rate by 25 by Mr. Darshan Desai, CEO, Aspect Bullion & Refinery
Below the Quote on RBI’s decision to raise the repo rate by 25 by Mr. Darshan Desai, CEO, Aspect Bullion & Refinery
“The RBI’s decision to raise the repo rate by 25 basis points to 5.50% reflects growing concerns around inflation, particularly due to elevated crude oil prices and geopolitical uncertainty. For the gold market, the impact will depend on how the decision influences the rupee, inflation expectations and broader investor sentiment. Higher interest rates can weigh on gold, but the metal may continue to attract interest as a hedge against inflation and uncertainty.
From the bullion industry’s perspective, physical demand in India remains price-sensitive, with consumers and jewellers taking a measured approach to purchases. With the festive and wedding season underway, demand should gradually improve, although elevated prices may keep buyers selective.
In the coming days, gold prices are likely to remain volatile as markets assess the RBI’s policy stance alongside US interest-rate expectations, dollar movements, crude prices and geopolitical developments. We expect buying to remain selective in the near term, with festive demand providing some support to the domestic bullion market.”
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