COMEX Gold prices declined for the second consecutive week as both the dollar index and US benchmark treasury yields rose. Concerns about the US banking sector’s health and weak Chinese economic data led to a haven shift towards the dollar. Moody’s Investors Service downgraded several American lenders, signalling potential concerns for a handful of larger … Read more
The week ending July 7 turned out to be a week of whipsaws for the gold traders as, depending on the US data released through the week, the metal swung from one end to the other end of its current trading range of $1900-$1950. The US macroeconomic data released in the week were mixed. ISM … Read more
The government needs to expedite its work on revised CPI and may help the RBI manage inflation expectations better as the published indices are in divergences with market prices as the current consumer price index- CPI base of 2012. The current indices are derived from the consumption expenditure survey (CES) conducted during 2011-2012, long before … Read more
Inflation further eased to 5.3 per cent after dropping to 5.59 per cent in July. This will be the second-consecutive month that the inflation will be between 4 and 6 per cent, which is the RBI’s tolerance band. Food prices fell by 3.11 per cent this month, causing the drop in inflation. After the pandemic … Read more
Across the world, supply vs demand mismatches are fuelling inflationary pressure. In such circumstances, contrary to the popular notion of high-quality stocks taking a beating, history shows that such companies have outperformed the broader market even more strongly (when CPI inflation exceeds 6%) on revenue growth, profit margins and shareholder returns. This construct bodes well … Read more
After three successive quarters of above-target inflation, there are signs that inflation may have finally peaked, Barclays India said in a report. Favourable base effects, improving supply constraints and a small reversal in food prices will likely have a moderating effect on CPI inflation over coming months, it said. In its estimation, inflation will remain … Read more