World Politics & Geopolitical Tensions:
A Ukrainian official stated that diplomatic efforts to stop the Russian invasion are becoming more intense, indicating that the battle in Ukraine is still ongoing. Separately, the first-ever coordinated naval patrol in the Pacific by China and Russia could increase geopolitical tensions.
Economy and Global Markets:
The increased trade tensions and policy changes have left the prognosis for the global economy uncertain. The International Monetary Fund (IMF) has revised its earlier prediction for global growth, estimating it to be 3.0 percent in 2025 and 3.1 percent in 2026. The world's GDP is predicted to increase at its slowest rate in 17 years, according to the World Bank. A new 50% tariff levied by the United States on Indian exports is anticipated to harm important Indian export industries including textiles and jewels. Indian business leaders are responding by highlighting the importance of diversification and establishing trade connections with new markets.
By year's end, gold prices are expected to achieve even another record high, with Comex futures possibly reaching $3,600 per ounce. Strong demand for investments, geopolitical dangers, and global economic headwinds are to blame for this.
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