Gold, silver likely to shine as safe-haven bets; inflation in check

New Delhi: The Economic Survey on Thursday said inflation is unlikely to be a concern in the next fiscal year even though prices of precious metals -- both gold and silver -- are likely to continue to increase due to their sustained demand as safe-haven investments amid global uncertainties. It said the inflation outlook remains benign, supported by favourable supplyside conditions and the gradual pass-through of GST rate rationalisation. Looking ahead, the inflation outlook remains favourable, with projections of inflation staying within target ranges, supported by strong agricultural output, stable global commodity prices, and continued policy vigilance. However, risks from currency fluctuations, base metal price surges and global uncertainties persist, warranting ongoing monitoring and adaptive policy responses. “The prices of precious metals, both gold and silver, are likely to continue increasing due to their sustained demand as safe-haven investments amid global uncertainties, unless a durable peace is established and trade wars are resolved,” the Survey said.