With the beginning of Navratri, the seasonal demand in the jewelry market is expected to rise again

- Boolean Bits - Dinesh Parekh -

- The price of gold rose above 1900 dollars an ounce amidst the war effect in the world market, the import cost at home increased.

In the global market, the Ukraine-Russia war continues despite the Fed's interest rate hike policy. At the same time, the Hamas attack on Israel prevented the decline in gold prices. Entering the bullish circle, gold, which was quoted at $1,820 per ounce, rose by 4 percent and started quoting at $1,920 per ounce on Friday. Despite the strength of the dollar, gold took a bullish turn on the war front, with falling US Treasury bond yields driving investors to buy gold. A rally in oil prices has supported gold's rally.

Central banks of all countries have increased their gold reserves by increasing gold purchases and banks are buying gold at every price.

Outflows of exchange traded gold funds (ETFs) have increased and bond returns have also declined, which has a double-edged effect on gold prices. New York's Comex market's short-term position in gold has been reduced and this has influenced gold prices and prevented a bearish trend in gold.

Russian President Putin has reduced the exchange rate to 96 rubles to the dollar, controlling the currency. It should be noted that Brinks has filed a case against an unknown person who ran away with the delivery of gold and cash worth 17 million dollars from their warehouse in Air Canada's fraudulent delivery and demanded compensation.

In the month of September, gold showed a decrease in the price of 3.7 percent, registering a big change in the price of gold in the last 3 months. A strengthening dollar and bond returns will have a negative impact on gold sales, and data on changes in financial data and declining Chinese gold import premiums are likely to create volatility in gold. Inflationary fluctuations with little stock market support and the shadow of recession and central bank interest rate hikes seem to be creating a volatile situation in gold prices.

Gold prices had fluctuated between $1,900 and $1,950 per ounce in the month of September and suddenly fell by $100 per ounce after September 27. The war between Israel and Hamas has taken the bullish direction and pushed gold back towards $1900 an ounce.

As certain global groups keep gold prices under pressure, fundamental gold prices are not known and if the pressure eases, gold prices may see a big jump per ounce. Overall gold will rise due to this combative environment and gold will hit between $1875 and $1975 per ounce.

Silver was quoting 2094 cents per ounce on Friday in the world market last week, in March and May silver was quoting 2300 cents and in May-July it was quoting 2110 cents. Thus, it seems that silver will take an upward direction by showing the price of 2220 cents per ounce due to the fluctuation of 200-200 cents per ounce due to the war between Israel and Hamas. 78,000 new silver contracts were registered last week, with 6,000 contracts being rolled out for December delivery, the amount of silver withdrawal will be seen at the end of the year.

On October 6, large speculators and 154 traders of commercial companies shed 3,144 contracts in their long positions, leaving a total of 97,461 positions open on the Comex market in New York. 112,474 contracts stood by 121 traders with 1,705 contracts falling in short-term trades, suggesting that silver will rise and bearish.

In the Commitment of Traders report, open interest in silver futures on Comex by traders stood at 1,10,000 contracts or 5,500,000,000 oz. At that time there are 50,000 contracts of 8 commercial traders i.e. 2500 lakh ounce contracts. The above-mentioned figure should cause a sudden rapid rise in the price of silver, causing everyone to panic. Another 3,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000.

There is a slight improvement in the income of old silver scrap. Silver mines can increase their production as prices rise and supply can meet demand.

Overall, there is no bearishness in silver and silver will settle between 2200 and 2400 cents per ounce. In the local gold market, the price of gold has increased by Rs.1000 per ten grams and gold is quoted at Rs.59700 per ten grams.