After a short-lived jolt in gold and silver, the jewelery market is booming again

- Boolean Bits - Dinesh Parekh

- Although there is a possibility of slowing down the new demand in the market ahead amid the headwinds: Global gold reached the level of 2050 dollars.

Against the white market, the Fed is easing its interest rate cuts, with gold hitting between $2025 and $2040, and finally $2050 to $2055. This year, the Fed is trying to keep the inflation rate under control to 2.50 percent, indicating that it may cut interest rates after March this year. It was quoting $2034 per ounce on the Comex market in New York on Thursday afternoon. Investors analyze inflation data and are looking for a strengthening trend in gold. Traders are trading gold at a slower pace and increasing their holdings in gold on the understanding that gold holds store value and the Fed will not cut interest rates more seriously, with Commerce Bank's head of research putting gold at $50 an ounce bearish and gold in the low $1980s and highs. The price will hit $2050 per ounce.

Central banks of all countries will continue to buy gold continuously and will not bring inflation below 2 percent. The Fed will slowly cut interest rates to keep gold prices bullish and people will keep capital safe by hedging gold. Gold and silver are going through a rut and trying to digest bearish shocks to stay stable and take a bullish direction.

US President Joe Biden said Hamas-Israel would announce a cease-fire by Monday, but Hamas and Israel have denied this, supporting bullish gold prices. Then the war between Ukraine and Russia continues after two consecutive years, the global financial situation is tense and everyone is trying to stabilize their own country's currency, the war could enter a new phase with Germany refusing to send troops to Ukraine. Fluctuations in oil prices support global inflation and rising inflation will put people at risk. Regardless of the overall global financial situation, people will keep their capital safe by investing in gold. Thus, there is no room for recession in gold with the demand for gold and it will not be surprising if gold hits 2150 dollars per ounce at the end of the year.

In the global market, silver showed a price of 2240 cents per ounce on Thursday, falling within 2300 cents, while silver is digesting the shock of the bullish recession, while the ratio of gold-silver is 1:90, 1 ounce of gold is equal to 90 ounces of silver, it shows that gold and silver are facing each other.

It is not surprising that silver prices fall despite the gap between supply and demand of silver in a silver shortage. Silver production is declining and finding new silver has become a difficult task, but time will tell how much the gap between demand and supply widens and that will determine the direction of silver prices. The Silver Institute report states that silver production has jumped by 57 percent and the industry is receiving silver reserves at $17 per ounce. Also less waste silver can be obtained from silver copper-zinc etc. as a by-product which will give an opportunity to earn more profit of silver mines. The Pan American report states that the average silver price in 2023 was $26.55 per ounce, which was $4 more than the average price. Commerce Bank's head of research says that while everyone was predicting that silver prices would hit $30 an ounce this year, he sees silver at $28 an ounce, suggesting a downside of $2 an ounce.

176 New York long silver traders reduced their silver positions by 4,200 contracts to a total of 116,190 contracts, while 116 short-term silver traders reduced their silver positions by 5,805 contracts to a total of 131,750 contracts. Silver demand from China and India will support bullish silver prices and silver will touch between 2230 and 2550 cents per ounce.