Drawing a parallel between the trade wars of the 1930s that triggered the Great Depression, and the ones happening now, Arvind Sahay, Chairperson, India Gold Policy Centre (IGPC) at IIM-Ahmedabad, spoke to Businessline about what possibly lies ahead for gold amid the prevailing local and global economic uncertainty. Excerpts:
What do you think is causing the recent gold price rally?
We have been saying at the IGPC since last December that gold prices are set to go up. It is likely to go up till at least the second half of next year. There are global and domestic reasons for this rally.
There is a growing concern about macroeconomic uncertainty. The US-China trade war is getting nastier. Now, the US President wants American companies to come out of China. The global financial system is under stress.
The banking systems in India, the US and Germany are facing stress. In India, exports are stagnating. The auto sector is in a bad shape. People are postponing purchases. In the times of economic uncertainty, people turn to safe havens. Gold is a safe haven - it always has been, through history. This triggers demand and hence there is an increase in gold prices.
How serious is this global economic uncertainty?
Esta historia es de la edición September 13, 2019 de The Hindu Business Line.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición September 13, 2019 de The Hindu Business Line.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Covid Presents An Opportunity For India
India must attract investors exiting China post-Covid. Streamlining of project clearances and relaxation in FRBM norms will help
Did Alternative Assets Shield You From Covid-19 Volatility?
The assets closely linked to stock and debt markets could not stave off the losses
How To Put Aircraft To Bed
Preserving grounded planes, to get them up and flying at short notice, is a challenging task. Ashwini Phadnis captures the process
There Can Be No Going Back On WFH
Covid-19 has fast-forwarded the shift to ‘work from home’. However, some face-to-face connect will always be needed
UN, WHO Urged To Ensure ‘Benefit Sharing' Of Covid-Related Data
Biopharma firms should reach vaccines, medicines to poor nations at an affordable price, say civil society bodies
With No Clear Signal From Rlys, States Explore Ways To Bring Back Migrants
Quarantine centres, cross-country buses being arranged even as migrants hop on to boats, trucks and ambulances
Centre Allows All Neighbourhood Shops To Open But With Riders
Final call will be taken by local authorities; shopping complexes that draw fewer ‘outsiders’ are permitted to operate
Covid Impact Relatively Muted In India
Compared to Italy and the US, India’s rate of infection spread has been slow. This can be attributed to the strict measures in place
How Global Trade Will Fare Post-Covid
China isn’t likely to lose its pre-eminent position soon. India, for one, will need to make manufacturing globally competitive
How To Curb Harassment In The Virtual Office
Training and sensitisation are essential. Institute a strict dress code and chat etiquette to ensure professionalism during video calls
