1.Taxation and Duties: Any changes in import duties or taxes on gold and silver can directly affect their prices. For example, if the government increases import duties on gold, it might make gold more expensive in the domestic market, leading to price fluctuations.
2.Economic Policies and Outlook: The budget may include policies related to economic growth, inflation, and interest rates, all of which influence investor sentiment and the demand for safe-haven assets like gold and silver. In times of economic uncertainty, investors often flock to gold and silver as stores of value.
3.Currency Movements: A government budget can influence a country’s currency, and currency movements often have a strong correlation with the price of gold and silver. If the currency weakens, gold and silver prices could rise as they become cheaper for foreign buyers.
4.Monetary Policy: If the budget signals monetary tightening or loosening (like changes in interest rates), this could impact the price of gold and silver. Typically, when interest rates are low or inflation expectations rise, gold becomes more attractive.
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/ February 1, 2025