Gold has experienced significant price fluctuations in recent times. Colin Shah attributes this volatility to a combination of factors, including the stability of the US economy, high inflation rates, and lingering uncertainties in China and Europe.

Despite the turbulence, he anticipates that gold and silver prices will continue to rise in the coming quarters, primarily driven by inflation, interest rate movements, and geopolitical factors.

Regarding gold’s outlook, Colin Shah suggests that the upside potential could reach as high as $2,100 an ounce, while the downside risk is relatively limited, with a possible correction of around $50. Factors such as inflation data, employment figures, and interest rates are crucial in determining these price movements.

Regarding silver, Colin Shah notes that it has also experienced volatility but, interestingly, gold and silver tend to follow similar patterns. The demand for silver, especially during the gift-giving season around Diwali and Christmas, is expected to remain strong, potentially leading to price gains.

Colin Shah also touches upon the impact of external factors such as ongoing geopolitical tensions, like the Ukraine crisis, which can further influence precious metal prices.

Shifting to the Indian context, Colin Shah discusses the performance of the domestic precious metal sector over the past eight months. The industry has witnessed periods of strong retail demand followed by relatively slower phases. He attributes this volatility to various factors and anticipates a more stable and positive season ahead, driven by upcoming elections and an increase in wedding-related demand.

Regarding lab-grown diamonds, which are gaining acceptance as an alternative to natural diamonds, especially in Western markets. Colin Shah highlights government support and growing consumer interest, particularly in the US, where 30 per cent of engagement rings sold recently featured lab-grown diamonds. He predicts a promising future for the lab-grown diamond industry in the coming years.

Listen in for further insights!

______________________

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups. 

Related Topics