APPROPLES, ‘The increase in gold prices has expert caution’ (April 24).
The volatility of the exchange rate feeds the institutional demand of bilges. Gold at these levels will affect purchasing decisions in traditional retail markets such as India.
It is likely that the demand for ingots also remains strong of the central banks while trying to diversify the reserves and reduce the dependence of the still very crazy dollar.
The canoe rally has a deeper impact on the attitude of Indian consumers towards gold, reinforcing the attractiveness of metal as coverage.
This weighs traditional preference for unproductive physical savings.
In the case of India, this also equals the export of a significant portion of home savings.
The broader impact is a slower formalization of the economy.
Gold as an asset class offers relatively low long -term yields, wait for periods of high economic volatility duration as now. This affects the generation and dispersion of wealth in the country.
N Sadhasiva Reddy
Bengalurú
Security concerns
APPROVE THE ARTICLE “A COMPLICATED GAME FOR THE US Allies” (April 24), the agenda to protect national industries and increase government income, the president of the United States, Donald Trump, has not made any distinction between friends and enemies, while “reciprocal tariffs.”
This has put American allies in a shameful situation, the only saving grace is the 90 -day postponement announced for all nations that exception China.
American allies have greatly benefited from the ‘military shield’ provided by the United States and Trump cannot be criticized for asking allies to contribute more. But linking tariffs with the security problem exerts pressure on the allies and Trump would do well in treating tariffs and security as separate problems.
The current commercial war has already created tensions between the United States and its allies and linking tariffs could surely push some United States allies to China, which can affect the strategic interests of the United States.
Kosaraju Chandramouli
Hyderabad
Posted on April 24, 2025