Personal Finance
oi-Kuntala Sarkar
Indian gold rates have surged marginally today, in line with the international trend. At present, gold market analysts and investors are waiting for the FOMC meeting in March 2022. The interest rate hike in the USA, by Federal Reserve, is going to be one of the key factors in that meeting, which will directly influence the gold market. Now, the markets are starting to price, in a 50-basis-point rate increase, in the upcoming days, this will also be impacted by any decision, taken by the US Fed.
In India, and the global markets, inflation is the most important driving force of gold rates. Commenting on that, ECB president Christine Lagarde told Kitco News, “Inflation is likely to remain elevated for longer than previously expected but to decline in the course of this year. Compared with our expectations in December, risks to the inflation outlook are tilted to the upside, particularly in the near term. If price pressures feed through into higher than anticipated wage rises or the economy returns more quickly to full capacity, inflation could turn out to be higher.” With a hike in the inflation rate, the gold rates will also boom.
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