Gold falls below $5,000/ounce as inflation fears pressure Fed rate-cut outlook

Rising global inflation and potential rate hikes by major central banks are creating headwinds for non-yielding assets like gold. This directly impacts Indian companies whose business models are tied to gold prices.

• •Gold prices dipped on Monday.
• •Concerns that surging oil costs could stoke inflation further.
• •Major central banks, including the U.S. Federal Reserve, may adopt a more hawkish policy stance.
• •Hawkish policy dulls the appeal of gold as a non-yielding asset.
• •Risk flag: Unexpected dovish shift by central banks