Circumstances Driving Demand for the Yellow Metal Include Increasing Crude Prices and Us-led Inflation Fears
Gold is in the news, again. 2016 was a year of uncertainties, which works well for gold prices as investors rush in. Unexpected outcomes in the Brexit poll and the US presidential elections were topped by the most improbable geopolitical alliance [US and Russia] that led to a spike in the price of crude oil; these three essentially formed the basis of the uncertainty. However, this still does not take into account the likely significant changes in US policies under the new president [Donald Trump], adding to the ambiguity of the global situation. With most parts of the world still struggling on the economic front, it is a difficult situation for most assets except gold. Comparatively, there is less uncertainty in India, but the dynamics that drive gold prices are fundamentally global.
The major factors that affect it—strength of the US dollar and Federal Reserve System (Fed) interest rates, EU’s and Japan’s monetary policies, inflation and geopolitics— are all moving parts that combine and determine the price of gold in international markets. For India, it is this dollar-based price of gold, plus the significant impact of the rupee-dollar exchange rate, from which gold derives its rupee price. Taxes such as import duties only add to this. This is because we import 99.9 percent of the gold consumed; local mine production is miniscule in comparison. Since gold is the largest import item value-wise after crude oil, international gold prices affect our current account deficit, which is why gold import is a contentious issue.
この記事は Forbes India の March 03, 2017 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Forbes India の March 03, 2017 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
