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Gold’s already struggling market gets another jolt from India’s import duty hike

July 2, 2022

NEW DELHI (July 2) This week has brought an end to the first half of 2022, and it has been a volatile one for gold as well as commodities at large. We are facing uncertain times ahead as market players try to assess the implication of higher interest rates on economic growth while the Russia-Ukraine fighting continues to intensify.

Gold witnessed mixed trade in the first half of the year and has registered a modest near 1 per cent decline. The second quarter saw some selling pressure in bullion, and gold  ..

Gold is considered a safe haven, as well as, an inflation hedge. However, it has struggled to gain despite increasing growth concerns, persisting inflationary pressures, and selling pressure in the equity market.

Data released this week showed increasing stress on major economies while inflation remains at elevated levels. The US consumer confidence and manufacturing PMI fell more than expectations while Q1 GDP was revised further down and personal spending rose at a slower pace.

Core PCE price index, however, rose at a slower pace indicating some easing in price pressure.

Amid other economies, euro-zone consumer prices rose at a record pace last month while the German unemployment change unexpectedly rose. However, German consumer prices rose at a slower pace.

Despite increasing stress on economies, comments from central bank officials indicated that the current focus is on getting inflation under control and they may not alter their stance even if it  ..

Economic Times


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