Fluctuations in gold-silver prices will go higher: China's purchases are likely to increase in the world market

- Boolean Bits : Dinesh Parekh

- Further, the price of silver is expected to rise faster than gold: Global silver, which is currently $23, may rise to $30 an ounce.

Traders' meeting in the world market was followed by a speech by Fed Chairman Jerome Powell. In the month of December, a 50 points increase in the interest rate indicated a bullish trend in gold and a rise in the price of gold by 1 percent has been seen. After rising above 1800 dollars in the world market, the price has remained at 1785 dollars.

Traders and investors are sitting on the fence on how much the Fed will raise interest rates next year, depending on Fed Chairman Jerome Powell's speech. Gold prices got a boost on signs that the Fed will slow interest rates and rein in inflation to 5.1 percent in 2023, which could lead to a rally in gold. It should be noted that gold prices generally rise every year during the period from December 15 to January 15.

A major correction is likely to come in gold after the FOMC meeting in January. Gold has seen a bullish trend since the Fed meeting in December and gold bullish traders are taking short-term trades.

When crude oil prices fall, traders move away from oil investments and into short-term investments in gold. Investors see the prevalence of risk in investing in precious metals and when interest rates are at their highest, hedge funds tend to aggressively invest in gold.

With oil prices hovering around $70 a barrel and capping oil prices, Russia cannot be forced to sell oil. As a result, Russia appears to be trading gold against oil to increase the scope of the trade.

The relaxation announced after China's covid scare crisis and lockdown has created an environment for a revival in China's economic condition and it is predicted that there will be a lot of Chinese gold buying from next month. China's central bank has bought more gold after three years and at this low price it bought 300 tonnes of gold to increase its reserves and there are indications that it will buy more.

After the Christmas celebrations in Europe and America, the knocks of recession will be heard at the doors of both the countries. As the war between Russia and Ukraine continues, the global countries will see an increase in inflation and a threat of economic crisis. Ignoring the interest rate of the Fed, gold can hold the direction of 1900 dollars per ounce by showing a bullish trend.

In the world market silver price fluctuated by 50-50 cents per ounce, silver has maintained a level of 2300 cents per ounce. In two weeks, the price of silver rose by 9 percent, indicating the direction of the market movement. 4 million ounces of silver stocked in silver inventory in the vaults of Comex in New York. In this, India's demand for silver will become the gold of the poor, and the import of silver will surpass the 2015 silver import record.

Silver withdrawals in London vaults of 45,166,000 ounces of 1,000-1,000-ounce bars paint a picture of silver shortages in the vaults.

It would not be surprising if the demand for silver from solar panels, electronics sector and funds and institutions as well as investors pushes the price of silver towards $30 per ounce. In this, the silver supply will decrease as the silver income from recycling old silver will decrease. At present, the price of silver will fluctuate faster than that of gold. Experts say that investors who hold silver for a long period of time can reap huge profits. Silver is not bearish. A gradual improvement will be seen.