Page 19 - Bullion World Issue 10 February 2022_Neat

Bullion W
Bullion World | Issue 10 | February 2022
ebruary 2022
orld | Issue 10 | F
This could signal that gold is poised
to reclaim its position as an inflation
hedge in a store of value. traders
will be watching several things to
answer that question

• Interest rates as elevated rates
tend to increase the cost of
owning gold
• cryptocurrencies as increased
volatility may push money to
look for a more stable store
value
• the path of the US dollar for
any potential signs of weakness

In terms of the Indian perspective,
the World Gold Council says that
inflation is the most important factor
fueling short-term gold demand in
India. As an inflation hedge, Indians
are turning to gold. For every 1%
Ms Renisha Chainani, Head-
increase in inflation, gold demand Research
climbs by 2.6%. Augmont Goldtech Pvt Ltd.

INDIA INFLATION AND GOLD PRICE OF LAST 10 YEARS • Renisha Chainani has rich
research experience of over
15 years and expertise in
Fundamental, Technical,
Sentimental, and Intermarket
Analysis in Bullion, Commodities,
and FOREX.
• Before joining Augmont, she
was associated with IIMA-
IGPC and was heading the
Commodities research desk at
India’s top broking companies
like Edelweiss Securities, Globe
Capital, and Monarch Networth
Capital Ltd.
Source: Augmont Research, Bloomberg • She holds MBA(Finance) degree
and is currently pursuing a Ph.D.
in Gold Markets from Gujarat
When India’s inflation rate grows, the rupee's value falls, and University.
individuals save money in gold. As a result, if high inflation persists • Mrs. Chainani has published
for an extended period, gold becomes a tool for hedging against various research papers in
inflationary causes when gold prices rise. renowned international journals
and her articles in print media.
Therefore, I believe investors looking for a way to hedge their • She has been a prominent guest
portfolios against the risk of slowing growth and high inflation speaker on business news TV
channels like CNBC TV 18,
should put at least a 10% allocation in Gold in the current CNBC Awaaz, Zee Business, ET
macroeconomic environment. As specified earlier, the present Now, etc for the last 8 years to
economic scenario resembles the 1970s; Gold is expected to share her views on Bullion and
perform well in the next few years and maintain its status at Inflation Commodities Markets
Hedge.

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