Bullish situation in gold and silver: Now the market is eyeing the wedding season

- Boolean Bits - Dinesh Parekh

- After the price of gold crosses $2,000 per ounce in the new year in the world market, it is likely to reach $2,200.

Gold will hit resistance around $2000 an ounce due to Fed interest rate uncertainty - moderate inflation, dollar weakness - etc. In the escalating war between Ukraine and Russia, Israel has hidden Hamas terrorists in a hospital in the Gaza Strip, so Israel does not want to end the war by speeding up the bombing to eliminate the Hamas army. As a result investors are buying gold even at these inflated prices. Analysts say that gold prices will face resistance at $1,950, then $1,970 and $1,990 per ounce, after which gold will take a little bite at $2,000 per ounce and reach $2,200 per ounce.

Although oil production rose in the US, oil prices fell, supporting gold's rally as it tumbled around the top. Investors are coming to invest in gold as the yield of Fed's treasury bill decreases from five percent to 4.50 percent.

As many as 307 traders shed 8,375 contracts in long-term contracts on the New York Comex market in gold, leaving a total Lvatch position of 669,139 contracts, indicating that gold will remain bullish in the long term. Meanwhile, in gold short-term deals, as many as 241 traders have reduced 7218 contracts leaving 689433 contracts of total exposure, indicating that they will continue to bullish in gold prices, thus reducing the deals.

Central banks of every country are increasing their reserves by buying gold. In it, 200 lakh ounces of gold are changing hands every day in the London Bullion Market Association. It has a large volume of gold transactions of 0.001 torch ounce, which is also increasing with the current gold transactions. It is to be noted that no figures are available on the amount of gold smuggled from South Africa to Swiss refineries via Dubai. Thus, there has been a big jump in the premium of gold being exported from Switzerland to China via Hong Kong.

The belligerent environment, weakening of the dollar, buying by central banks, etc., will not allow gold prices to fall. As the income of old gold scrap in the world market decreases, the supply of gold decreases. Overall, gold will not break the $1900 per ounce level and if there is any change in the Fed's interest rate policy, gold will not take a step from its bullish direction. The Fed is likely to cut interest rates in 2024. In the global market, silver has recorded faster price fluctuations than gold. Silver quoted a low of 2210 and a high of 2395 cents per ounce.

On the one hand, while the production in silver mines is increasing, the miners are controlling the amount of silver sold in the market by hedging the silver stock and making silver enter the bullish circle.

In New York's Comex market, around 180 silver traders added 2,920 long silver contracts to a total of 128,533 contracts, indicating that they are bullish on silver prices, while 138 short-term traders and funds added 2,762 contracts to a total of 141,610 contracts, playing on bullish signs. have been

Silver consumption is increasing in industrial sector, solar panel, electric auto (electric vehicle) sector, electrical appliances sector. Thus there will be a shortage of silver in the long run when the supply decreases against the demand. As a result the prices of silver will rise. Income from old silver scrap has fallen, leading to a shortage in supply.

Overall silver will hit between 2200 to 2500 cents per ounce. Diwali was good in domestic gold market. There is an atmosphere of joy in the market. By holding a new scheme with gold showrooms, by attracting customers, by selling more gold jewelery at low prices, to create new stock, after the benefit, the fifth party will make every effort to satisfy the demand for weddings by making new purchases.

Traders in the bazaar say that during Diwali, when prices were low, consumers eagerly bought coins and jewelery and light weight jewellery.

Importers have ordered gold at all prices and even imported gold by fixing the dollar-rupee exchange rate and the price of gold abroad. It has supplied the market by importing more gold in the month of October.