Market moves neutral amid dollar-rupee volatility despite global strength in gold

- Boolean Bits - Dinesh Parekh

- It is likely that the progress of the monsoon will prove to be decisive amid the focus on the demand of rural and farmers ahead of the festivals.

In the jewelery markets of the country, the prices of gold and silver recently fluctuated amid the festive season. Gold and silver prices in the domestic jewelery markets were recently seen moving between the price of the dollar against the rupee in the domestic currency market and the unilateral fluctuations in the prices of precious metals in the global market. Recently, after Rakshabandhan and Janmashtami, the festivals of Shri Ganapati Dada have started in the country and the season of Navratri, Dussehra- Diwali will continue till Christmas, market experts were showing the possibility of maintaining seasonal demand in jewelery markets. Sources of the market are showing the possibility that the demand for Lagnasara will also increase in the market. However, after the rains in the country decreased significantly in the month of August, rains have recently reappeared in some states in the country in September. However, the overall trend of rains has been slower than expected and if this situation continues and if the effect of Al Nino is seen on the rains, the demand from the rural areas and the farmers in the jewelery markets will be affected, the market informants were also showing fear.

Meanwhile, the global market saw a rebound in gold prices recently, led by a fall in gold prices. However, such price hikes were indicative of the performance. Global gold prices fell below $1900 an ounce at one point in recent lows, followed by a rapid rebound to $1930 to $1935 an ounce, but the upswing did not last and prices fell again from 1913 to 1914 to around $1927 to 1928. Behind the global market, a one-sided surge in prices was seen in the jewelery markets at home as well. In the domestic currency market, the price of the dollar against the rupee recently showed a biased effect and its impact was also seen on the jewelry market. When the rupee falls and the dollar rises, the import cost of precious metals imported into the country increases and vice versa when the rupee rises and the dollar falls. is created. In the Mumbai currency market recently, the dollar price against the rupee rose to a high of around Rs.83.25 to 83.30. Various state-owned banks recently went out to sell dollars on the so-called instructions of the RBI. Rupee appreciated as exporters also came to sell dollars. Although the global index of the dollar against various major currencies in the world market had fallen recently, there was news that it had risen again. There were indications that the global index of the dollar would go above the level of 105 again after falling below 105. Following this, gold prices rose in the world market and funds were sold again. The market had failed to digest the upswing.

Behind gold, global silver prices also saw a one-sided jump. There were indications that the price of silver per ounce in the world market increased from 23.40 to 23.45 dollars at the highest level and then from 22.80 to 22.85 to 22.85 to 23.58 to 23.59 dollars. At home, the price of silver in the Ahmedabad market was seen to be around Rs.73 thousand to 74 thousand per kg. Ahmedabad gold prices were showing unilateral fluctuations around Rs.61 thousand per 10 grams. According to the news of the world market, the Federal Reserve in America has avoided further increase in the interest rate in the recent meeting and it has been decided to maintain the interest rate. However, as the inflation rate remained high amid high crude oil prices, the experts indicated the possibility of further increase in the interest rate in the United States. Global gold prices were seen under pressure as the dollar index and bond yields rose again in the world market following the directions showing such a possibility. US jobless claims fell recently and news of a strengthening job market there had a positive effect on global dollar prices. There, jobless claims fell to close to two lakh, a new eight-month low. Meanwhile, in Britain, there was news of the Bank of England putting the brakes on interest rate hikes as the rate of inflation slowed down recently. As a result of this, the price of the British pound fell to a six-month low against the dollar at the global level, and its impact was also seen negatively on the global gold prices. Meanwhile, global crude oil prices rose to a ten-month high, prompting fears of global inflation rising further. If inflation increases, the various central banks of the world will have to increase the interest rates again, the players were showing the possibility that the price of gold in the world market will fluctuate further and be seen under overall pressure.