Market to bounce back from five-month lows in gold: Will silver prices also rally instead of bearish?

- Boolean Bits - Dinesh Parekh

- In the world market, by the end of the year, the price of gold will increase from 2075 to 2100 dollars per ounce.

America's financial position is improving in the vs free market. Investors are coming to invest in Treasury Bills instead of gold as investors are getting higher returns on Treasury Bills and not getting much profit in gold interest or any other form of gold income - Gold prices fell below $1900 an ounce and hit a low of $1889 as investors were moving away from gold. On Thursday, the price was quoted at 1897 per ounce at Comex in New York.

Gold hit five-month lows, signaling dollar strength. After March 2023, gold traders from UAE, quoting gold prices below $1900 per ounce, have come into a frenzy and started buying gold at lower prices. Also, oil money transactions between India and UAE are not in dollars, but in the currency of UAE and India, dollar option has been supported. Which may lead to a slow start of gold trading in local currency in Dewad.

As the Chinese government imposes strict controls on the import of gold in China, the premium of gold imported into China through Hong Kong is 40 dollars more than the London prices, only time can tell whether the importers will find new ways to meet the demand for gold in China. As China's financial growth slows and the yuan stabilizes against the dollar, locals are buying gold at a higher premium and taking advantage of lower gold prices.

US Fed Chairman Jerome Powell has said that he will be able to control inflation by increasing the interest rate in the coming days and will continue efforts to keep the dollar stronger.

About 40 BRICS countries are looking for an alternative to the US dollar by arranging a new currency. In it, Brazil, India, Russia and other 40 countries of South Africa will form a block and create an alternative currency to the dollar, and by continuously buying gold behind the dollar in the world market exchange, the above countries will support the demand for gold, which will immediately prevent the recession of gold and boost the price of gold.

Oil importing countries like India, China, etc. will have to bear the brunt of rising oil prices due to rising oil prices and reduction of discount on oil supply by Russia which may indirectly affect the demand for gold and cause chaos in gold prices which may last for a long time. Gold prices will improve in the near future and the price of gold will be between 2075 and 2100 dollars per ounce at the end of the year and at the beginning of 2024.

A war between Russia and Ukraine is becoming more dangerous, shaking the global economy, causing a financial meltdown and pushing gold prices towards $2,000 an ounce. The continuous purchase of gold by the central bank of every country in the world will raise the price of gold and cause a boom in gold.

Overall, the slowdown in gold will remain for some time, with gold prices at $1850 per ounce, the continued demand for gold will once again touch the price of $2000 per ounce. Silver was quoted at 2265 cents per ounce in the Comex market of New York on Thursday evening after registering a fluctuation of 10/15 cents per ounce in the world market.

September deals on New York's Comex market saw a 30/30 cents per ounce fluctuation and silver prices hit a range of 2,261 to 2,291 cents an ounce. Silver prices edged up 2/2 cent an ounce on Friday in New York's Comex market.Sept-December silver trading volume of 34,000 contracts shows a new trend, exposing the trading volume for March next year and May 2024, and exposing long-term trading volume. Curry explains how traders, institutions and speculators will play silver.

New York's Comex market showed a decline in both long- and short-term contracts, reflecting investor sentiment. In the long-term silver standing trade, 9440 contracts in the trades of 155 traders were reduced by carrying forward 110282 contracts, indicating that there will be some major fluctuations in silver prices, while in the short term, the volume of borrowings was reduced by 5596 contracts in the trades of 112 traders to 127307 contracts. Thus, a decline in trades indicates that silver prices will rise in the long term.

The silver miners keep the current silver in stock without selling their product in the market, waiting for this silver depression to subside and keep the production unchanged.

Domestic gold prices did not ease despite the softening of global gold prices as the rupee depreciated sharply to Rs 83.25 against the dollar, raising import gold reserves. While gold futures are quoted at Rs.58530 per ten grams, the gap between futures quoted at Rs.60150 per ten grams and spot gold is Rs.1520 per ten grams, an increase from Rs.1100 per ten grams last week. The showing indicates that the supply of gold exceeds the demand.