The decision by RBI to reduce the repo rate to 6% is a welcome move as it aligns with broader goal of fostering economic growth. Pertaining to gold industry, the anticipated lower interest rates should further drive investor interest towards safe-heaven assets like gold, resulting into increasing momentum in the sector. We expect this to bolster the demand for gold. We believe that the monetary easing will encourage consumers and investors to consider gold as a safe bet amidst all the ongoing global uncertainties. With an approach to control inflation and borrowing costs reduced as well, we predict increased consumer spending power that will eventually benefit the gold industry.
Dr. Renisha Chainani,Head of Research of Augmont