Investors should hold on to cash or reduce their stock holdings in the event commercial banks in Hong Kong start raising their prime rates for the first time in almost four years, if history is any guide.
Spot gold fell 0.7% to $1,808.89 per ounce by 01:54 p.m. EDT (1754 GMT), after hitting its lowest since Feb. 4 at $1,798.86. It has declined nearly 4% this week.
The rate cycle has made a U-turn and RBI is likely to continue to increase the rates to reach the pre-pandemic level of 5.15 per cent by March 2023, the report added.