 "All factors point to strong gold prices be it low interest rate, low bond yields, fiscal policy or monetary policy, or inflationary pressure expectation.")
Indian rupee is under pressure as lockdown is affecting Indian economy. With supply disruptions, inflationary pressure are expected to increase and strong US dollar is not helping our cause. Emerging market currencies are witnessing sell off and we may see the phenomenon continuing till lockdown has not been lifted. With import export taking back stage and FIIs outflows from debt and equity market continuing, there is little respite for Indian rupee. The more lockdown gets extended; more economy will suffer ultimately weakening our currency. We expect the rupee to remain under pressure in the medium term.
Gold prices have retraced from
