Mr. Colin Shah, MD, Kama Jewelry
The decision by the US Fed to keep the policy rate unchanged for the sixth consecutive time comes as a move to keep a check on the inflation and associated economic risks. While there were high hopes tied to a possible rate cut, there will now be a wait-and-watch situation with no immediate relief in sight due to the lack of progress towards the desired goal to bring inflation within 2%.
This unprecedented trendline in the global economic landscape will attract investors to move toward safe investment havens, ultimately propelling gold demand in the international markets.
While this is great news from the investment front, gold Impex players are likely to feel the heat owing to a rise in the yellow metal rates. While the exports witness a dull momentum owing to multiple economic and geo-political elements, domestic demand remains unperturbed and shall continue to do so.
