Gold bullish again: Purchases by central banks of other countries, including China, increased

- Boolean Bits - Dinesh Parekh

- Gold and silver coin makers become active in the country ahead of Diwali: production decline in South Africa

The war between Ukraine and Russia continues in the black market, in which Hamas-attacking Israel, the world is divided into two parts, the world is also starting to fight in the Middle East, and there is no concrete action to postpone the war or stop the war. The ounce price was quoted at $1983 per ounce on Friday. In the last two weeks, the price of gold has seen a rise of 9 percent.

After about 10 years, the US Treasury bond yield rises above 5%, and gold ignores such high returns and holds its bullish direction, strengthening gold. Rising oil prices have supported gold's rally. Gold has taken the direction towards $2000 per ounce with the dollar strength not having any adverse effect on gold prices.

The London Bullion Market Association states that unallocated gold bars in London's vaults will be leased to funds, institutions and other investors in the market to focus on making gold. Europe has continued to fight recession by keeping its interest rate unchanged at 4 percent to control inflation.

Central banks of every country are increasing their country's gold reserves by buying gold at every price. It should be noted that China is buying gold through Hong Kong's Shanghai exchange, but its import demand has decreased by 11 percent.

The gold production in the gold mines of South African countries is gradually decreasing and in the long run this gold production will lead to a shortage of gold and a rapid rise in gold.

Silver prices in the world market fluctuate by about 35/40 cents per ounce. Silver settled around 2273 cents an ounce, quoting a price of 2315 cents in the high. In New York's Comex market, 159 Dilroy's gold longs were down 747 contracts for a total of 98,219, while 114 traders were short by 2,786 contracts for a total of 11,099 contracts, indicating that silver has lost its bearishness and the bullish movement has begun.

It would not be a surprise to see silver prices at 2400/2500 cents per ounce later this year. In the Mumbai gold market, the price of gold has risen by Rs.1500 per ten grams. At that time, the price of gold in the bill is quoted at Rs.61300 per ten grams without the gold being quoted at Rs.60800 per ten grams in the futures market.

The narrowing of the gap between futures and spot gold to Rs.500 per ten grams indicates that the supply of gold is not meeting the demand. The news that 35/40 lakh marriages will take place within a short period of time this year will create demand in the gold jewelery market and gold and jewelery will be sold at high prices.

Revenues from old gold jewelery have increased, but tax raids have forced traders to run up the bill. Importers import gold at every price. Then the smuggler tries various tricks and smuggles a lot of gold through the passenger and makes a lot of profit by supplying the gold supply in the market. In it, customs seized the dollars and other currencies from the passengers going to Dubai, Singapore and said that they were using the dollars to buy gold. Gold smuggling through hawala brings gold and makes profit.

Gold coin makers are minting lots of coins for Diwali. Overall gold is not bearish.

Silver price is quoted at Rs.73300 per kg in Mumbai silver market while silver is quoted at Rs.71600 per kg in futures market. The price of silver in the bill is Rs.71050 plus 3 percent GST means Rs.71380. There are tax raids in the market during Diwali and this raid stops the business without bills in the market for some time after which silver trade starts again without bills.

Importers meet market and industry demand by ordering silver at every price. Sales of silver coins this Dussehra have been moderate, but traders say that silver coins will sell well in Diwali this year.

Old silver yields are modest. Demand for silver increases and business improves. Overall silver is not depressed and prices are likely to touch Rs.75,000 to 76,000 per kg.