The price of gold in India is determined by the London gold fix, which is set by the London Bullion Market Association (LBMA).
The supply of gold is determined by the amount of gold mined and recycled.
Demand for gold is driven by jewelry sales, investment, and central banks.
Interest rates can impact gold prices as higher rates can reduce demand for gold as a store of value.
Global economic conditions, such as inflation and recession, can also affect gold prices.The Role of the London Gold Fix
The London gold fix is a widely followed benchmark for gold prices. It is set by the London Bullion Market Association (LBMA) and is based on the average price of gold traded on the London Metal Exchange (LME).
Key Market Trends
The gold market has experienced significant fluctuations in recent times, with spot gold prices plummeting by 0.47% to USD 3,033.35 per ounce. This decline is largely attributed to the weakening of the US dollar, which has led to a decrease in the value of gold in other currencies.
Weakening of the US dollar
Increase in interest rates
Rise in inflation
Decrease in demand from China
Impact on Investors
The decline in gold prices has significant implications for investors, particularly those who have invested in gold ETFs or physical gold.
Market Sentiment and Expectations
The US weekly unemployment claims data is a crucial indicator of the labour market’s health. Investors closely watch this metric to gauge the strength of the economy and make informed investment decisions. The data is released by the US Department of Labor and is typically released on Thursday mornings.
Budget 2025: Budget 2025: The Budget 2025 is an annual budget presented by the Government of India to the Parliament of India. It outlines the government’s financial plans and policies for the upcoming fiscal year, which typically runs from April 1 to March The Budget 2025 is a critical document that sets the stage for the country’s economic growth and development. It includes provisions for various sectors such as agriculture, industry, services, and infrastructure, as well as initiatives for social welfare and environmental protection. The Budget 2025 is prepared by the Ministry of Finance, in consultation with various stakeholders, including the Reserve Bank of India (RBI), the Central Board of Direct Taxes (CBDT), and other government agencies. The presentation of the Budget 2025 is usually made by the Finance Minister of India, who outlines the government’s vision for the country’s economic development and the strategies for achieving it. The Budget 2025 is a highly anticipated event in the Indian economy, as it provides valuable insights into the government’s priorities and policies for the upcoming year. It also sets the stage for the market’s expectations and investment decisions.
The IndusInd Bank Crash: Understanding the Situation
IndusInd Bank, one of India’s largest private sector banks, has seen a significant decline in its share price, plummeting by 36% in a short span. This sudden drop has left investors wondering if they should buy or wait for a trend to emerge.
*High non-performing assets (NPAs): IndusInd Bank has been struggling with high levels of NPAs, which have weighed heavily on its profitability.
*Competition from private sector banks*: The bank faces intense competition from private sector banks, which have been expanding their customer base and offering more competitive interest rates.
*Regulatory pressures*: IndusInd Bank has been subject to regulatory pressures, including stricter capital requirements and increased scrutiny from the Reserve Bank of India.The Impact on Investors
The crash of IndusInd Bank’s share price has significant implications for investors.
Sebi probes promoters of two listed firms. The Securities and Exchange Board of India (Sebi) has initiated an investigation into the promoters of two listed companies, namely, Hindustan Copper Limited and Hindustan Zinc Limited.
