New Year Starts With Fantastic Bullish In Gold: Big Price Bounce

- Boolean Bits : Dinesh Parekh

- Gold refineries at home hit by rising smuggling against fall in official gold imports

- In the global market, gold prices are likely to face resistance at the top of $1900...

The New Year has started with a fantastic boom in the jewelery markets of the country. At the beginning of the new year, prices have seen a sharp rise in a short period of time. Such an initial boom has been seen after many years considering the period of beginning of the new year. In the first 10 to 12 days of the new year, gold prices in the world market have seen a huge jump of 50 to 60 dollars per ounce, and the players of the domestic and international markets have been stunned. World market sources said that active buying of funds in gold has recently been seen in the global market as the dollar global index fell from highs against various major currencies in the early period of the new year. The market found a new reason for rising gold prices as the number of Covid cases increased in China and various countries around the world earlier this year. Market experts said that uncertainty is created for the global economy when the outbreak of Corona increases and such uncertainty creates safe haven buying in gold. Recently, there were indications that the price of gold in the world market has risen to a high of 1885 to 1886 dollars per ounce. As the dollar index remained under pressure in the global market, the prices of the British pound and the euro rose rapidly against the dollar in addition to various Asian currencies at home and in the global market. Sources in the jewelery market said that as the rupee strengthened against the dollar at home and the price of the dollar went down to within Rs.82, the price rise in precious metals in the domestic jewelery market was limited.

Meanwhile, the price of gold in the Ahmedabad jewelry market has crossed the level of Rs.57 thousand per 10 grams and reached close to the level of Rs.58 thousand, while the price of silver in Ahmedabad has increased to Rs.69 thousand per kg. Silver prices in the world market reached close to 24 dollars per ounce. The price of platinum reached a high of 1075 to 1080 dollars and the price of palladium reached close to 1800 dollars. The price of Brent crude oil in the world market went up to 83 dollars per barrel. Gold prices hit a new eight-month high amid a rally in global markets. However, the rate of inflation in the United States and the increase in interest rates by the Federal Reserve caught the eye of the market. Such a rise in gold prices in the world market was seen in May last year. In the world market, the bond yield has also retreated and due to this, it has also seen a positive effect on the global gold prices, said global experts.

In the global market, gold prices are likely to face resistance at the $1900 level and there is a possibility that the bullishness will be exhausted. Meanwhile, analysts were predicting a slowdown in demand from the palladium-led auto sector this year as electric cars became more popular in the global market. The global dollar index has fallen to a low of 103. Last year, this index recorded a high of 114 to 115 points. India's gold import in December has decreased by 75 to 80 percent to only 20 tons, which was 90 to 95 tons in December 2021. Such decline in monthly imports has broken a record of about 20 years. Although smuggling of gold has recently increased in the country and the official import has decreased, jewelery market players are also watching whether the import duty of gold is reduced in the soon to be presented central government budget.

Gold purchases by the Reserve Bank of India have increased in recent years. Apart from this, the central banks of various countries of the world have also increased the purchase of gold. While the year 2023 is considered a recession year for the global economy, the intercurrents of the gold market have remained firm. Meanwhile, gold refineries at home have been hit. The sources said that due to the increase in gold smuggling, the adverse effect of gold refining has reached the country.