After the slowdown in the jewelery market, demand is expected to pick up after the Shradh ends

- Boolean Bits : Dinesh Parekh

- Rapid decline in global gold on the assumption that interest rates in the US will rise further and the dollar will rise

In the global market, the gold bullish has retreated with the indication of a 0.75 basis point rate hike at the Fed meeting on September 20-21, higher than expected inflation in the US, and a break in the price hike bullishness, with the gold price falling by $50 to $75 an ounce in just two days. The price of gold dropped from 1,731 dollars per ounce to 1,655 dollars per ounce, and the dollar index rose from 110 again. In New York's Comex market, the October contract was at a low of $1,710 and a high of $1,730.60 per ounce and the December contract was at a low of $1,790.402 and a high of $1,750.50 per ounce and the October/December gold contract was trading at $9.80 per ounce. In December/February, the price range was 12.50 dollars and in February/April 14.80 dollars per ounce in the contracts of the New York market, a situation has arisen that one has to wait for the rise of gold. It remains to be seen which direction gold will take and what is volatile as many new factors are at work in gold prices in the market.

Overall, gold will depend on dollar-rupee exchange rate and global prices. Although there is no long recession, gold prices will touch between Rs.51000 and Rs.53000 per ten grams in Diwali and demand will be good.

In the last 15 days, silver prices have fallen by Rs.2000 per kg in the local silver market. During the week, silver has been quoted at Rs.58220 above and Rs.56200 per kg below.

On the news that 400 kg of silver has been seized, the spread between spot and future silver has been Rs.1500 per kg.

The income of the old silver is negligible and while the showrooms are making new goods in the hope of demand after Shraddha, the coin manufacturers have started making coins in full swing. Traders who find silver in the bill at Rs.600 per kg less than the futures, sell the futures and buy the silver present in the bills. Investors also invest in silver on the assumption that silver will rise in Diwali.

Overall there is no slowdown in silver and silver may touch Rs.60,000 per kg once.

The war between Ukraine and Russia has rocked the global economy, and as the US and European countries clamp down on Russian gold refineries, Moscow has begun efforts to break the London Bullion Market Association's monopoly on setting gold prices in pounds and dollars, as the war over how gold can be used as a currency against oil continues. done On March 25, 2022, the Russian Central Bank announced that it would buy gold from the Russian Bank at a price of 5000 rubles per gram and at that time it would buy gold at a price of 1555 dollars per ounce or 50 dollars per ounce, but at that time gold was trading in the market at 1950 dollars per ounce and The above Russian prices raised the possibility of getting gold at a big discount in the global market. If such a Russian scheme buys gold cheaply from banks and gold mines, it is considered a form of robbery. But at a discount in the world market, countries like India, China or Iran will buy the Russian barred gold bars and help lower the value of the dollar in the New York or London markets by paying for the oil. Thus Russia will trade gold bars through Moscow International Precious Metal putting global investors in a quandary so that the US and European gold restrictions will not have any effect. In fact, gold in the market is considered a dollar market and its price is expressed in dollars, so the market will deal in gold only in dollars.

The Moscow World Standard will face difficulty in operating. In such a dilemma, Russia will have to accept London's gold price and the discount scheme will have to be put on hold, otherwise the Western countries will have to prepare to bear the brunt of rising oil prices.

Bank of America Corp.'s global Fed manager said in an August survey that 58 percent of investors predict a faster recession in the coming months than in 2020. Investors should not make the mistake of buying ETF shares. At present, it has to be said that inflation will be the driver in the world and determine the direction of the economic system.