Big swings in gold leave buyers confused: Fears of reduced sales

- Boolean Bits - Dinesh Parekh

- Silicon Valley Bank's collapse, financial crisis in Europe and Swiss Credit Bank's precarious situation will influence gold prices.

Gold has weakened against the white market as the dollar strengthened following the Fed's interest rate hike. Gold is quoting at an eight-week low and the price is said to be $1,975 an ounce. Dollar hits 6-week high. The dollar index rises and gold competes with the dollar and bullion is drawn to the currency as the currency strengthens. Gold prices fell on the news that US President Biden will start putting a ceiling on America's debt. America and European countries are ready to take new measures to embarrass Russia by banning Russia's oil sales and creating instability in the oil system. There is no talk of a ceasefire helping Ukraine continue its war against Russia by arming it, and the global financial situation is deteriorating while the belligerent environment persists.

UBS analyst Glavany Stonovet says people still believe the Fed will raise interest rates. Metal Focus then states that if the Fed cuts interest rates after June, gold may once hit $1,700 an ounce, but this is highly unlikely.

Metal Focus managing director Newman Philip says that gold has soared due to the banks' turmoil, and gold's break above $2,000 an ounce will not be a permanent high. The collapse of Silicon Valley Bank, the financial crisis in Europe and the precarious position of Swiss Credit Bank will influence the price of gold.

TD Securities reports that gold is showing a decline of $100 an ounce from the highs and gold quotes today at $1975 an ounce from $2075 but now in the long term gold will enter a new cycle circle and hit between $1994 and $2150 an ounce.

Analyst Ghali says that a new cycle will emerge in gold prices and gold will rise in the next 12 months, with the Fed raising interest rates at the Fed's June meeting, which will impact gold prices.

Zimbabwe has used 140 tonnes of gold to stabilize its currency by devaluing its dollar by digitalizing gold. At that time, Americans are giving more importance to gold by showing eagerness to invest heavily in gold stocks for the first time and have begun to invest twice as much in gold. Mir, an analyst at Talarax Metal, says that gold will play between $1,965 and $2,000 an ounce, but once a soft environment is created, it would not be surprising. China's demand for gold has increased and the Reserve Bank of India is trying to stabilize the rupee by selling dollars and considering new measures to reduce gold imports, while the Swiss Bank supplies gold by importing gold through Hong Kong.

The war in Ukraine, fluctuating oil prices, China's new relationship with Iran, declining US influence over Saudi Arabia, North Korea's weapons tests, continued gold purchases by the central banks of each country, etc. will keep gold rates from falling and gold may play between $2,000 and $2,100 an ounce. .

The rapid decline of silver in the world market has given a fresh shock to the organization and investment. Silver prices will drop 70-70 cents per ounce during the week, forcing silver to enter bearish circle once again. However, in the long run this decline will be washed away and silver will once again touch the price of 2700-3000 cents per ounce. It noted a large increase in silver production following the New Pacific Silver Project's more chad mining in Bolivia and will attract investors to invest in silver mining stocks.

New York silver futures trading May 12 short-term and long-term Comex figures suggest bullish signs lurk in silver over the long term. The Comex market has recorded an increase of 2120 contracts from 158 traders for long term, leaving a total position of 119971 contracts. At that time, 127 short-term traders' contracts have increased by 2728 traders, with a total of 133801 trades standing, traders have signaled a boom. Silver fell from 2,410 cents to 2,350 cents per ounce, indicating that it will take direction from 2,700 cents per ounce in the coming week. Producers of silver mines are profiting by selling silver at every price and constantly trying to keep production low.