GJ Town India

  Uncertainties supported bullion prices to rise phenomenally    According to the Weekly Blog of Dr. Renisha Chainani, Head- Research, Augmont suggest, gold prices have surged 50% this year to touch a record level of $3965 (~Rs 120,000), and Silver has surged 65% this year to touch the level of $48.48 (~Rs 147,500) on safe-haven demand due to market uncertainty.     2025 has been the year of uncertainties- it started with political uncertainty, then tariff uncertainty, then geopolitical uncertainty, then rate cut uncertainty and now US shutdown uncertainty. All these uncertainties have supported bullion prices to rise phenomenally this year on safe-haven demand.    A weaker dollar, robust central bank purchases, rising demand for gold-backed Exchange-Traded Funds, and growing interest from retail investors looking to hedge against rising trade and geopolitical tensions are all contributing factors.    The demand for gold-backed ETFs, fu...

  Donald Trump's proposed tariffs uncertainty remains yet!   According to the weekly review, Dr. Renisha Chainani, Head- Research, Augmont said, gold prices plummeted more than 3% last week, while the dollar remained at two-week highs after US inflation data met expectations, implying the Federal Reserve may be hesitant about further rate reduction. Gold prices underwent a week of unprecedented volatility , establishing a new all-time high before falling sharply. The precious metal's eight-week winning streak came to an abrupt stop as the dollar strengthened and the mood shifted toward impending tariffs.   Donald Trump's proposed tariffs uncertainty remains . President Donald Trump said that his proposed 25% tariffs on Mexican and Canadian goods will go into effect on March 4, coupled with an additional 10% charge on Chinese imports. He also threatened to levy 25% on EU goods. If Trump achieves an agreement with Canada and Mexico to postpone tariffs, the immediate...

Strong buying interest from jewellery retailer & consumers   Recently, the World Gold Council (WGC) published the Gold Market Commentary, It's always the quiet ones! WGC said, flying high in August! Following a strong monthly increase in July, gold posted another healthy gain in August to finish 3.6% higher at US$2,513/oz.   It also reached a new all-time on 20 August before a very marginal decline into month end. According to our Gold Return Attribution Model (GRAM), gold was pulled higher by a material drop in the US dollar and, to a lesser extent, lower 10-year Treasury yields as the Fed signalled the time had come for rate cuts.   The main identifiable negative contribution came from a momentum factor, the gold return in the previous month, i.e. when high, the following month typically sees a lower return and vice versa. Also of note in August, the significant cut in import duty on gold in India, which took place in late July, has been a shot in the a...