India raises interest rates, worrying signs for gold

Rising inflation in China and India’s tenth interest rate hike since March 2010, is set to take a toll on consumers preference for the yellow metal, according to analysts and traders.

“Gold and silver will surely get pummelled in the near term with signs of a stronger US dollar and yet another rate hike in India. Investors have very little savings these days and prefer not to invest in gold,” said Manoj Maheswari, bullion analyst at a brokerage firm here.