One-sided surge in gold: fear of 275 tonnes of gold being smuggled into the country this year

- Boolean Bits - Dinesh Parekh

- In the global market, gold headed lower, indicating increased purchases by central banks of various countries: firm inflows in silver.

Goldman Sachs states the truth in Vs Schwabjar. Gold will determine its direction after the announcement of when and how much the Fed will cut interest rates at the FOMC meeting in the United States.

If gold breaks the price of 2063 dollars per ounce, there will be a big boom in gold and if it breaks 1955 dollars per ounce, then there is room for recession in gold. Stuart O'Reilly, a strategist at the Royal Mint in London, says that demand for gold bars and coins has increased as inflation has increased, and people's demand for safety of their money has jumped by 26 percent and purchases of gold have increased. Force the Bank of England to lower interest rates and make interest rates more favorable for gold. There is also a possibility that the price of gold in America will show the price of 2150 dollars per ounce due to the good data of American labor market. Gold has returned 28 percent in the last 12 months.

The Central Bank of London bought 399 tons of gold in the 3rd quarter of 2022, breaking the record of 20 billion dollars. 1181 tonnes of gold has been bought in the world market from July to September last year.

Turkey, Uzbekistan, Qatar and Central Bank of India have bought a lot of gold, Turkey has registered a 300% increase by purchasing 46.8 tons of gold, while Russia and China do not announce their gold purchase figures, but the demand for gold has increased in India and South Asia.

As the war in the Middle East and the war between Ukraine and Russia drags on, the global economic situation has become volatile and people will be buying gold to avoid the worries of rising inflation. As a result the prices will go up.

In the global silver market, silver may once again show a price of 25 dollars per ounce, but for now, silver will fall between 2250 cents per ounce to 2390 cents per ounce. As there has been a slight increase in the income of recycling silver in the world market, there will not be a shortage in the supply of silver. As demand for silver increases in new sectors and the use of batteries in solar panels and automobiles increases, silver prices may rise.

Silver production in silver mines has increased by 2 percent and miners are trying to keep silver stocks normal by hedging by stockpiling silver and will stabilize prices and prevent a downturn in silver.

Even though demand for silver from China and India is increasing, the price of silver will be affected and the withdrawal of silver in vaults in the supply stock will increase. Morgan will have no adverse effect on the silver stock held in the Vault. Vaults have seen an increase in silver withdrawals as people prefer to keep the silver in their possession. At one time, silver could absorb the shocks of the boom and bust and show a new direction.

Due to the global strength in the domestic gold market, gold prices have been strong and the futures are quoted at Rs.62300 per ten grams, while the bill price of gold is quoted at Rs.63300 per ten grams, while the price of gold has increased by Rs.200 per ten grams.

It is to be noted that in the year 2021-22 gold jewelry showrooms were decreasing, the jewelry shops are increasing due to the improvement and an increase of 28 percent has been seen and the showroom owners are trying to attract more customers by making a lot of big advertisements. Gold consumption in India's jewelery market is on the rise and its growth has increased by 50 per cent and against the earlier forecast that there will be a modest downward trend, the forecast has turned out to be wrong and jewelery sales have increased in 2023/2024. The demand for gold will increase this year and even though Holashtka is approaching, there will be some softening in the demand but there will be no slowdown in gold prices and the global market will give direction to the local market.' A lot of gold is being smuggled into the country and this year maybe 270/275 tonnes of gold can be smuggled. Importers demand gold at all prices and it is estimated that more than 700 tonnes of gold will be imported this year. As gold prices remain strong, the income of old gold jewelery is seen to increase by 20 percent. Inflation scares people, but as it is estimated that there will be around 1 crore 10 lakh weddings this year, the sale of jewelery by gold showrooms will increase. Overall gold prices will fall between Rs.62000 and Rs.64000 per ten grams.

Silver prices in the domestic market remain soft due to global slowdown. With silver prices at Rs 72,650 in bills and futures at Rs 71,150 per kg, demand is good and investors are buying silver at every low and will book bullish profits in the long run.