Mr. Colin Shah, MD, Kama Jewelry
“Fed’s decision to keep the rates unchanged comes as per the industry expectations. With inflation moving towards the desired target of 2% as set by the US Central Bank, a possible rate cut hinted during September is expected to have a cooling effect on the gold prices. However, the situation rests on which way the inflation trendlines is heading. The potential rate cut by the US Fed will go a long way in bringing back the sheen to the Indian jewellery exports.
Domestically, the gold prices witnessed a marginal upswing of ~1% in domestic market followed by Fed’s nod for a possible rate cut. The price of yellow metal is currently hovering at an attractive level post the announcement of customs duty cut in the union budget. Consumers have already started making the most out of this period of attractive gold rates and with festive as well as wedding season in sight, the sentiment is leaning on the positive for this quarter.”
