900 tonnes of gold import is possible this year: Price fluctuations show strength

- Boolean Bits - Dinesh Parekh

- There is little possibility of a big boom in Chadi now: the price is likely to continue to fall between Rs.71000 to Rs.74,000 per kg.

Against the black market, all eyes were on the Fed meeting. In June, Fed Chairman Jerome Powell kept interest rates on hold and signaled that inflation was under control, prompting a sharp drop in gold prices by $30/30 an ounce, with gold quoting a three-month low of $1,933 an ounce.

The Fed is not raising prices by putting a brake on interest rates this month, pushing gold into a soft circle, showing prices at $1,933 an ounce. Then Fed Chairman Jerome Powell has indicated that he may raise the interest rate twice more this year. The two-day meeting of the central bank will review the monetary situation and discuss the interest rate and how to keep inflation under control. Also, rising Treasury bill yields supported the softening of gold prices. Inflation has reached a 25-year high of 4 percent. With the Fed not raising interest rates in the month of June, there is uncertainty in the rising gold prices, but there is talk that there will not be a long recession.

said an analyst in Stockholm, Switzerland. Gold is trending lower after hitting a 20-year high under pressure on the dollar. At this stage, oil demand is at a 3-month low and oil prices are fluctuating on signs of production cuts between Saudi Arabia and OPEC. There is a soft tone in gold which has an impact on gold prices.

While Iranian banks have called people to invest in gold, a property dealer in China has announced a free gold bar for new house buyers in China, and people are getting ready to buy houses with the greed of gold. Also, Iran has adopted an approach to stop money in gold mines.

Also, the war between Russia and Ukraine has become more intense and the two countries are accusing each other of fighting, and this war may start a nuclear war, increasing the possibility that people will invest their money in precious metal - gold, increasing the possibility of a break in the gold recession and gold will return to $2025 per crosses the surface of the ounce.

Overall fluctuation in oil prices, deployment of weapons by Taiwan, trade war between China and America, war between Ukraine and Russia, global financial instability and continuous purchase of gold by central banks of all countries makes it difficult to predict when gold prices will not fall and when gold will rise. But when the possibility of a recession is less, the financial uncertainty of the US in the month of April, Canada's gold exports to the US increased by 2.5 times, showing a record breaking number of exports.

Soft gold prices in the global silver market weighed on silver prices and silver was quoted lower at 2331 cents per ounce after silver saw a decline of 70-80 cents per ounce. Long positions in silver interest stocks fell by 1.606 lakh shares to 1.410 lakh shares on New York's Comex market. Due to the softness of silver, silver miners set prices by hedging by keeping as much production as possible without further supporting new production.

After the price of 13 dollars per ounce in 2010 failed to catch the direction of prices towards 50 dollars per ounce, lower investors in silver entered the market and started making new investments. Analysts say that if gold hits $3,000 per ounce, the gold-silver ratio will become 1:40 and silver prices will show a price of $75 per ounce.

Speculators, funds and institutions on New York's Comex market have reduced long and short positions, signaling that a major bullish rally in silver is not imminent. In New York's Comex market, as many as 167 traders shorted 8,142 contracts of long-term deals and held 132,544 contracts to increase total exposure, indicating that they are not bullish on silver. Then in the short-term silver deal, as many as 143 traders kept their short-term silver deal contracts short by 8132 contracts and in the new position, a total of 146655 contracts, indicating that they are not bullish on silver and will continue to play silver around 2300 cents.

Analysts of the world say that the silver demand of China and India will also be weak this year, but silver prices will play around 26 dollars.