The gold play of the global big banks will put the market at risk

- Boolean Bits - Dinesh Parekh

- The price of gold in the world market will be in the range of 1850 to 2100 dollars

In the global market this month Fed Chairman Jerome Powell kept the interest rate unchanged and will raise the interest rate again from July to 5.60 percent at the end of this year to correct the financial crisis by controlling inflation. quoting $1919 per ounce to mark a low.

The dollar strengthened on better US housing data and gold prices tumbled to close 1 percent. It should be noted that in the year of December 31 to March 31, 2023, Bank of America and J.P. Morgan's gold holdings rose sharply, and the OCC report showed that gold prices rose 9 percent from December 31, 2022, to March 31, 2023, with each metal up 9 percent on average, but J.P. Morgan and Bank of America's gold holdings increased by $53 billion, or 25 percent, on March 31 and will touch $253 billion, while Bank of America's derivative holdings increased by $34 billion to $101 billion, or an astonishing 50 percent, while Citibank's position A slight increase of just 9 percent was recorded. Regardless of gold price volatility and trading novice Bank of America did not reduce its short-term positions, J.P. As Morgan has been very experienced in long and short holdings and trades over the past several years, these two banks' gold play will put the market in a risk-averse position and gold will go on a major bullish move and probably fall between $1850 an ounce and above $2100 an ounce. . Thus, by increasing the holdings to five times the total deal of Comex, Bank of America will make the market dangerous due to its ineptitude.

The Ukraine-Russia war has fueled global financial instability, but Fed Chairman Jerome Powell took great pains to tell Congress why he applied the brakes by keeping interest rates on hold this month, sending gold prices down as much as 1 percent as the market reacted negatively. .

One of the reasons for this price drop is the fall in demand for gold due to China's financial crisis. One thing to note is that continued gold purchases by central banks will not allow gold to fall below the short fluctuation range of the 1940s and 1980s. Crude oil price fluctuations, Fed's changing interest rate policy, plans to take new measures to combat inflation, projections of protracted Russia-Ukraine conflict, dollar weakness-strength etc. will determine the direction of gold prices and it seems that there will be no slowdown in prices.

Silver will determine its price by keeping the US Federal Reserve monetary policy at the center, taking into account micro economic factors and holding the price direction of each other with the global silver price movements linked to gold price fluctuations.

Experts say that in the current situation, it seems more beneficial for an investor to invest in silver than gold.

IG Financial Markets analyst Vincent Boyne of Yahoo's finance department told IG Financial Markets analyst that it would be wise to invest in silver at this stage rather than gold, even though the risk of volatility in it remains, but traders with a speculative mindset are starting to take the risk of such fluctuations in silver.

Research department of ANJ said that the demand towards Chinese industry has decreased due to the slowdown in China's financial development and the decrease in silver premium has had an adverse effect on silver imports, in which the demand for silver in India is also expected to decrease compared to last year. will be like an ounce.

Domestic gold prices fell on soft news from the global market and gold prices fell by Rs.800 per ten grams. During the week when gold futures were trading at Rs.58,400 per ten grams, futures prices also fell by Rs.800 per ten grams. Then the present gold is quoted at Rs.58450 per ten grams in the bill.