The market is likely to rise again from the bottom despite the downturn in gold

- Bullion Bits: Dinesh Parekh

- Silver miners play speculative game by hedging against global forward sales

In the global market, gold traders, funds and investors were watching the Fed meeting, with more than 11 members of the Fed meeting signaling that interest rates would rise in 203 years. Mango. Gold hit a five-month low. The dollar has also strengthened in the last six months, supported by a slowdown in the market.

Banks have also slowed their buying of gold, with the central bank signaling a rise in interest rates by the Fed, so falling demand could have a knock-on effect.

The fall in gold by investors suggests that the Fed may again plan to break financial stimulus flow and slow down its move to focus on job data to create more jobs.

Oil prices hit a three-month high, pushing up gold prices and slowing demand. Analysts and gold charts say the Fed meeting showed signs of raising interest rates, but at the same time inflation is expected to rise and traders are not sure what new measures will be taken to control it. If the precious metal continues to buy gold to protect against inflation, demand will pick up and the recession will stop and gold will pick up again. At present, gold prices have shown a bottom and it is more likely that gold could change direction at this price.

It is worth mentioning here that Tanzania has doubled its production capacity in a few months by setting up a gold refinery in partnership with a Dubai-based company and a Singapore-based engineering company with a refining capacity of 80 kg per dinar. Will strengthen the position and earn more by increasing the value of gold.

The dollar strengthened, but at the same time, the value-added precious metal market declined without increasing Treasury yields, so the rise in gold prices will come to a halt. Yap Moon Rong, a strategist at IG Asia, said gold buying would take a break from August to September and that the Fed would adopt a new policy to ease inflationary pressures.

The two main reasons for the fall in gold were the rise in interest rates in Fed 303 and the strength of the US dollar to a two-month high. Palladium fell 10 per cent, platinum 6 per cent and gold 3 per cent. Yet in the long run gold will improve. Silver also fell by 120/120 cents an ounce to gold in global markets over the past week. Investors will come to buy silver at lower prices and speculators will raise the price by increasing the position of short-term loans.

Overall, the downturn in silver prices is likely to be short-lived and this will prove to be a bottom-up price.

The fall in global gold prices in the Mumbai gold market saw spot gold prices fall by Rs 1,000 per ten grams and Rs 150 per ten grams in futures. At present, gold is quoted at Rs 500 per ten grams on Thursday, while futures are quoted at Rs 3,150 per ten grams.