Gold and Silver Rally Amid Uncertainty
On the recent surge in precious metals, Matthews said, “Gold had a blowoff top a month ago and has since been building a new base. Technically it could go lower, but long-term, gold remains a valid hedge against inflation. Over the last 100 years, gold has risen about 5% per year versus the US dollar.”
He added that geopolitical shifts support gold demand: “The old Washington consensus is fading, and the world is becoming multipolar. In such political volatility, there’s greater appetite for gold. $4,500 per ounce in a year still seems realistic.”
AI and Its Ripple Effects on Markets
On AI, Matthews highlighted its impact on profits and jobs: “Big tech is monetising AI well, improving ad revenue and cutting labour costs. The recent 153,000 job cuts were mostly AI-driven in tech. AI is boosting profits but causing some job losses.”
He put it in perspective: “The Mag-7 companies employ about half a million people, similar to healthcare workers in Idaho. AI is accretive for companies and the economy, but there will be some collateral damage in the labour market.” Foreign Institutional Investor Sentiment
On FII flows into India, Matthews said, “Foreign holding in India is down to 15% of free float, near historic lows. Most selling this year was to fund China. I don’t see much more selling from here, and if earnings improve next year, there should be foreign buying.”
With global uncertainty, technological disruption, and evolving investor sentiment, Matthews’ insights stress the importance of a long-term perspective for both global and Indian markets.