What are the reasons for gold’s meteoric rise this season?
All that glitters: Mitra says products such as gold-brushed contact lenses and T-shirts with gold embroidery can be expected to be in the market next year. Abhijit Bhatlekar / Mint; Location: Popley Jewellers, MumbaiThe official view—and it’s not just our view—is that the dollar has weakened tremendously and it’s anticipated to slide further. That is one of the big reasons driving up gold. The other is an apparent inflationary trend in some countries, especially in the West. (For instance), Australia has already hiked interest rates. These are indications that the economy is going to turn around and there is inflation coming in sooner or later. And third, it (gold) is a portfolio diversifier. It is currently the only asset that has held on to its value, while other assets have had a roller coaster ride. While equity too has been doing well…how long will it sustain, consumers are not too sure. These are primary drivers of sentiments and price is following sentiments. But where is it all
