Surge in gold & silver prices
The depreciation of rupee coupled with expectations of deeper rate cuts from US Federal Reserve has set the prices of gold & silver in India souring. On MCX, October gold futures prices tipped at Rs 39,770 per 10 gram; while those of silver were pegged at Rs 51,285 per kg. According to experts, the record high prices have hurt gold demand in India and led to the plunging of gold imports by 73% from a year ago, stooping to the lowest level in three years. This trend has been resonated in the global markets too.
The forecast about rate cuts from US Federal Reserve stems from the fact that US manufacturing output reduced in August for the first time in over three years, according to the Institute for Supply Management’s Purchasing Managers Index (PMI). This also gave birth to the fears of the global economic slowdown. Added to this, are the repercussions of the ongoing trade war between the US & China.