Branch² Intelligence
Gold prices fall to Rs 1.44 lakh/10 gram; silver dips Rs 6,300 this week as Iran war raises inflation worries. What’s next?
Key takeaway
Gold and silver prices fell in India as US-Iran tensions stoked inflation fears, boosting expectations of tighter Fed policy and a stronger USD.
- Step 1US-Iran tensions raise inflation fears, strengthening USD and Fed hawkish expectations.
- Step 2Stronger USD and higher US real rates push global gold prices down, transmitted to Indian markets via import parity.
- Step 3Indian gold prices fall, squeezing jewellery retailers' margins and reducing gold loan collateral values.
Source: IN:Economic Times
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