Gold prices under pressure as global dollar surge breaks 20-year record...

- Boolean Bits : Dinesh Parekh

- After the revival of Shraddhapaksha at home, there is hope of a return of demand in the jewelry markets of the country.

At the Fed's meeting in the open market, Chairman Jerome Powell announced a .75 percent interest rate hike and signaled that each monthly rate hike would have an impact on the global economy. It becomes difficult to predict how much the interest rate will increase to control inflation and avoid recession. The jitters in the U.S. employment sector, fears of inflation and conflicting data on consumer demand - have all added to fears of an impending recession and volatility in gold. Gold prices fell to 1645 to 1650 dollars at the end of the week as the global dollar rose.

Fed Chairman Jerome Powell will face a difficult choice between the two. One is the alarming rate of rising inflation in America and the other is recession. London banker Henry Trumpton said in 1802 that we assume that the value of money in our hands is fixed and the price of gold fluctuates. But in fact the currency of every country is manipulated and gold and silver prices are more stable.

But it is not easy to assess how global financial volatility adapts to a recession and how well prepared we are to deal with it and how safe gold's volatility is.

In America and other countries of the world who have become more aggressive. They will have to face America's rising inflation and struggle to bring about financial stability and try to stabilize the prices of gold as a medium.

The head of the Swiss General Bank says that after touching the level of 1600 dollars per ounce in 2023, gold will rise again in 2024 and catch the direction of 1950 dollars per ounce.

While Swiss gold exports to China have decreased, Swiss gold imports to Turkey have increased.

Switzerland is the world's largest gold refining hub and the world's largest supplier of pure gold.

Western countries and refineries have stopped buying Russian gold. The Kremlin attacked Ukraine in February, and London, Zurich and New York, as well as Switzerland, have banned gold imports from Russia since August. News of Russia's renewed attack on Ukraine had a negative impact on oil supplies and pushed oil prices higher, helping to prevent gold's bearishness. As China contemplates a conflict with Taiwan, South Korea has shown North Korea through a display of military strength and weapons that it can fight off Kim Jong's attack. Due to such a conflicting environment, it is not surprising that the bullish streak starts once again in gold.

Overall gold seems to be driven by the Fed's interest rate hikes, protracted Russia-Ukraine conflict, Taiwan-China conflict and South-North Korea standoff and rising oil prices, along with inflation fears and inflationary pressures.

In the global market, the Fed's interest rate hike has created a new kind of jitters in the market with silver prices fluctuating by 40-50 cents.

The American Mint's illegal increase in the premium of one ounce Eagle brand coins has forced ordinary investors to buy silver at high prices and has started a coin minting scam.

Traders, funds, institutions and investors felt a new kind of tension and felt the dilemma of whether to buy and hold silver, with 1,891 contracts lower in long-term silver deals and 2,429 contracts lower in short-term contract deals in New York's Comex market.

Large speculators and 92 long-term traders increased by 1659 contracts to 53373 contracts, while commercial 32 traders and institutions decreased long-term by 401 contracts to 51822 contracts.

Besides, large speculators and 61 traders have shorted 6485 contracts and held 58013 deals in short-term contracts.

The decrease in overall long and short term silver contracts indicates that funds, investors in the market are unable to estimate how much silver supply and production will increase due to silver volatility and overproduction of silver from the vault, and there are indications of a bullish trend in the long term.