Silver Rs.71500 to Rs. Likely to hit between 75000: Gold will gain strength

- Boolean Bits - Dinesh Parekh

- During the festive days, the dollar-rupee exchange rate is around Rs.83, gold will take a bullish direction ignoring the global prices.

In the white market, Sonant has entered a bearish circle with prices quoting a session low of $1892 per ounce. Signals that the Fed will raise interest rates in November and fears that crude oil prices will break above $92 a barrel to control inflation have softened gold, and analysts expect gold prices to quote $1985 an ounce as the dollar strengthens. is The latest US data has shown that inflation has increased more than expected. Economists say that rising energy oil prices and inflation will remain at 3.6 percent, while gold prices quoted at $1,932 per ounce in December 2023 indicate a 12 percent fall in gold prices and signal softening.

The Fed is gearing up to raise interest rates and will raise interest rates sharply from November, said Nigel Green, head of the DeBeer Group, adding that rising US financial conditions will force the Fed to raise interest rates due to rising inflation last month. By strengthening the consumer index, it will disrupt the global economic system and also stop buying gold.

Chantal Shivan, head of Capital Light Research, says that although gold is under pressure, investors will liquidate the world's inflationary economic situation, creating a boom-bust cycle, and adopting the Fed's interest rate hike policy, European central banks will try to maintain their interest rates at 4.75 percent and difficulty in adopting new interest rate hikes. will feel At a symposium last month, Central Bank President Kristen Labarde said that the world would begin a new monetary policy under current circumstances that would affect gold prices. While Poland bought 18 tonnes of gold at low gold prices, India bought 2 tonnes and Czech Republic and Uzbekistan bought 11.1 tonnes of gold. It has been stated that the central banks of many countries have continued to purchase gold, in which Singapore has purchased 73.6 tons of gold, out of a total of 375 tons of gold purchased this year, central banks have purchased 2 tons less gold compared to 2022. Rising oil prices, Fed's policy to curb inflation by raising interest rates, gold prices under pressure despite continuous gold purchases by central banks have created a kind of uncertainty in the market by showing softness in the prices. . But when will gold get a break and break the $2000 per ounce price again as the Russia Ukraine war continues? Even though gold looks softer, gold will increase in the long run as everyone in the world is buying gold. Silver moves in tandem with gold prices in the global market. As silver prices soften, funds and investors enter the market to buy silver.

Long-term futures on New York's Comex market fell by 8,645 contracts by 140 traders to a total of 104,465 contracts, creating a volatile environment for silver in the market.

It is not known when silver will show a rapid rise in the current environment, just like it recorded a rapid rise during the time of Kovid or after the crash of silver prices in 2014. Besides, 111 traders in silver reduced short-term 6384 contracts and held a total of 115369 contracts, so there will not be much fluctuation in silver and in the long term silver will rise and show the price of 3000 cents per ounce.

Silver mines will not sell their product at low price and will sell silver at new price by keeping existing silver in stock. Overall, silver fell 3,000 cents an ounce and stockpiles of silverware, coins and bars will come in to sell silver pushing up prices. The fall in global gold prices in the domestic gold market will stabilize the price of the precious metal in the market by bringing the Fed's interest rate hike commitment and inflation under control which has reached 3.2 per cent. In rising oil prices, how much will Saudi and Russia produce less oil to raise prices to $100 per barrel? In this, the Indian government will increase the gold import duty, the gold import will be high, the wedding season and festive days will increase the inflation, the dollar and rupee exchange rate will be around Rs.83, the gold will take a bullish direction ignoring the global gold prices. The promise of gold is quoted at Rs.58470 per ten grams and the present gold is quoted at Rs.60100 per kg. Importers import gold by fixing gold prices and dollar-rupee exchange rate. Despite the seizure of more amount of smuggled gold, smugglers adopt new techniques to smuggle gold. When the demand in the showroom started to go out, the traders would come to buy gold at a low price, and the consumers would immediately put a brake on buying gold.