GJ Town India

  Central bank buying, ETF inflows, geopolitical risks fuel    In the Weekly [15-19 September] review Dr. Renisha Chainani, Head- Research, Augmont said, gold prices rebound to $3730(~Rs 110,600) again and silver touches new high of $43.94(~Rs 132,000), bolstered by strong central bank purchases, consistent ETF inflows, and safe-haven demand amid ongoing geopolitical tensions and worries about the economic effects of President Donald Trump's tariffs.    For the first time since December, the Federal Reserve cut its benchmark rate by 25 basis points, as was generally expected, placing the overnight funds rate between 4.00% and 4.25%. In addition, concerns over a weakening US labor market prompted the US central bank to consider two additional rate cuts this year. As a result, on Wednesday, the non-yielding gold price surged above $3700 to reach a new all-time high.    Fed Chair Jerome Powell stated that risks to inflation are biased to the...

Gold and silver's CPI soften over steady fed rate   At the juncture Colin Shah, MD, Kama Jewelry said, “The decision by the US Fed to keep the policy rate intact for the seventh consecutive time comes as per the industry expectations. Although the inflation has cooled down, it has still not come under the Fed’s expected range, thereby deferring the possibility of three rate cuts, which we could have possibly seen during this calendar year.   As per the forecast by Fed, it has hinted that it may start slashing rates from next year onwards wherein a rate cut of 100bps is in focus. However, we will have to wait and watch how the inflation numbers play out, which will further decide the possibility of rate cuts next year.   Gold prices saw some softness post Fed’s announcement in domestic market. Since Q2 of financial year is usually a dull phase due to monsoon and shraadh, we expect the prices to remain dampened during this period. Nevertheless, we hope for the demand ...