Gold surges: Signs that aggressive interest rate hikes in the US will remain intact

- Boolean Bits : Dinesh Parekh

- As the global dollar index rises, every bounce in gold indicates that funds are going to sell in the world market

The country's jewelery market has seen a rapid reversal of trends recently. Due to fluctuations in the world market and fluctuations in the prices of rupees and dollars in the domestic currency market, the jewelry market has recently witnessed a one-sided fluctuation. In the world market recently, gold prices rose rapidly to a high of 1784 to 1785 dollars per ounce, after which there were indications that the price fell again to 1755 to 1756 dollars as the boom broke. Behind gold, global silver prices also surged above $22 an ounce at one stage and then silver came down from the high to below $21. After the international market, prices have recently seen a sharp rise in the jewelery markets at home as well.

At home, gold prices rose and traded at a high of Rs.54,500 to 54,700 per 10 grams, then the prices came down. Market sources said that after the price of silver touched the level of Rs.62 thousand per kg, it was seen on a rebound from the high. Prior to this, the global dollar index fell from highs in the world market due to slower than expected inflation growth in the US and hopes that the Federal Reserve in the US would ease the aggressive policy of interest rate hikes, and due to this, global gold prices rose recently due to increased buying of funds in gold. An ounce had reached 1784 to 1785 dollars. Behind gold, global silver prices also rose due to this. As the prices in the world market went up, the import cost of precious metals at home increased and due to this, the prices of gold and silver rose in the jewelry markets of the country in the period after Diwali with the start of weddings. However, in the domestic currency market, the exchange rates of rupees and dollars have seen a significant upswing recently and the jewelery market players were also watching it. Against the rupee, the price of the dollar fell rapidly to a low of Rs.81, but then the price of the dollar rose again to Rs.81.65 to 81.70. When the dollar falls against the rupee, the import cost of gold comes down and the dollar rises and the rupee weakens. Market experts said that the import cost of gold goes up. However, the opposite trend is seen in the world market. Gold prices fall when the dollar index rises in the world market and global gold prices rise when the dollar index falls. In such a situation, the eyes of the jewelry market players are on all these things.

According to the news of the world market, the cases of Kovid have recently increased again in China. As a result of this, the offshore price of China's yuan currency against the dollar in the global market has recently seen a significant retreat in a short period of time. As the dollar became stronger, there was a surge in gold in the world market, and there were signs that buying and selling of funds had stopped. Amid the fear of China's new takeover, the global market has recently witnessed a bearish trend in silver, copper, platinum, palladium and crude oil prices. Platinum prices were seen dropping from highs to within $1,000 an ounce. The global price of palladium fell to a low of $2,000 an ounce at one point recently.

Crude oil prices in the world market have also been on the decline after the increase, its effect has also been seen negatively in the high head of gold. New York crude prices fell to a low of $79 a barrel while Brent crude fell to a low of $87. Meanwhile, retail sales figures out recently came in better than expected in the US after inflation came in lower than expected. However, the unemployment claims there have recently decreased from 4 thousand to 2 lakh 22 thousand. Thus, given that the job market has become strong and the retail sales have also increased, the possibility of the inflation rate increasing again has been discussed in the world market. As a result of this, the global dollar prices have risen again at the end of the week as the behavior also shows that the aggressive policy of interest rate hike in America will continue and due to this, the global gold prices have come under pressure again.

Meanwhile, the government has recently reduced the dollar customs exchange rate for importers from Rs.83.80 to Rs.82.60 and due to this the effective import duty of gold and silver imported into the country has come down accordingly. However, the government has increased tariff values ​​and the resulting reduction in effective import duty has been less than expected. The tariff value of gold has been increased from 562 to 570 dollars in terms of 10 grams per gram. When the tariff value of silver has been increased from 698 to 702 dollars per kilo, there was news recently.