The recent hawkish comments from the US Fed chairman let the gold investors take a cautious approach, pulling down prices to near $1800 an ounce this week.
Gold plays an important role in the Indian economy. It is considered a safe form of savings and investment among individuals, and it is an integral part of traditional ceremonies.
The Russia-Ukraine war, US Fed’s aggressive rate hikes, and persistent worries about China’s economy cast extreme volatility in commodity prices throughout 2022.
The US rate hikes continue to cast shadows on gold’s upside potential. The aggressive rate hikes of the US Federal Reserve made the US currency an attractive destination for more yield, prompting selling pressure in gold-like non-interest yielding assets.
