After rising gold-silver prices will break down again in the next time the bullish trend will continue

- Boolean Bits - Dinesh Parekh

- Gold production in China increased to 1800 tons in six months, but there are indications of increase in gold import there

Against the black market, Fed Chairman Jerome Powell has hinted that interest rates will rise and gold has jumped by $20-25 an ounce as the dollar weakens. The Fed raised interest rates to a 22-year high from 5.25 to 5.50 per cent, bolstering gold prices. The Federal Open Market Committee released a new statement at its June meeting, saying that while the unemployment rate has fallen and inflation is rising, the committee will make renewed efforts to stabilize the inflation rate around 2 percent. However, at the end of the week, global gold prices fell again from 1959 to 1960 dollars and silver fell to 24.31 dollars.

The BRICS countries will start the new currency with the backing of gold as an alternative to the dollar and will pay their currency in gold and oil in the market. Gold Association of China said that in the first 6 months of 2023, China's gold production has reached 1796 tons and gold import has increased by 17.5 percent to 65 tons. China's gold consumption has increased by 16.37 percent to 554.88 tons. Besides, 36,920 tons of gold has been used in Chinese jewelery and 146.31 tons of gold has been used in coins and gold, registering an increase of 3.12 percent. At that time, China's ETF investment has been 50.18 tons, decreasing by 1.20 tons. The People's Bank of China states that it has purchased 21 tonnes of gold in June.

China's demand for gold and the start of its currency, the yuan, to replace the dollar on the world market signal that it does not want to hold the dollar as a reserve for now, and paying the yuan in lieu of oil will affect gold prices.

JP Morgan states that while the price of gold will hit $2012 per ounce in the short term, analysts say that as the trap of recession in the United States spreads and the recession deepens, interest rates will fall in 2024 and support the gold boom, and gold will reach $2,175 per ounce in the next 12 to 18 months. Will affect the price. On the other hand, with increasing institutional gold demand and increasing central bank purchases, gold buying and hedging of dollar options will play an important role in all countries and will push up gold prices.

Also, Ukraine-Russia war will continue for a long time, it will have an impact on the global financial economy and the resulting instability will increase the gold prices. Rising oil prices will also influence the gold prices and support the gold boom. Overall gold is not bearish.

Silver prices in the world market fluctuated by 30-35 cents per ounce during the week.

Metal Fox Report states that in the year 2022, there was a lot of buying of silver in America and European countries, and especially Germany bought a lot of silver. But demand for silver fell in the first three months of 2023 as Germany imposed a 19 percent VAT on silver and demand for silver collapsed. In 2022, with the purchase of silver doubling from 2019 in the Western European countries and the demand for coins and bullion from retail investors of silver increasing, silver shortage started to occur in the market. When analysts fear that the withdrawal of silver present from the New York and London vaults will also lead to a shortage of silver, J.P. As Morgan and Bank of America have ample silver stocks, there will not be an immediate shortage of silver in the market, and in the long run, rising demand from the solar panel sector, the computer and electronics sector, and the electric auto car sector will lead to a shortage of silver, and silver will rise from $23 to $45 an ounce. So no wonder.

Although the production in silver mines is increasing, the demand for silver cannot meet the supply in the long run. As a result, prices will rise and support silver's bullish rally.

The income of old gold jewelery is also low. Households are unable to step out of their houses due to rains, so the income of old gold has decreased. Gold Importers Importers order limited gold. Demand will be moderate for the next two months. Due to inflation, people will not buy gold if they do not have savings. After the arrival of the new crop, farmers will have money to buy gold and people will buy gold at every price. Overall gold will depend on global prices and gold will play between Rs.60,000 to Rs.63,000 per ten grams and gold will not break the trough of Rs.59,000 per ten grams.