Boom in jewelery market before Dussehra

- Bullion Bits: Dinesh Parekh

- Rising dollar against the rupee has also had an impact on gold prices

The strength of the dollar has had to be offset by the lack of good news on US job data in the global market, and a strong dollar has set the direction for gold prices. The volatile dollar destabilized the price of gold and showed a bullish move of ૧૦ 10-12 an ounce.

But the dollar has been strengthening over the past year and rising inflation will once again prompt the Fed to try to control the market by changing its monetary policy and curb further rebound in gold prices.

A stronger dollar will reduce the attractiveness of gold against other world currencies and limit the purchase of gold as it becomes more expensive in its currency.

Rising inflation has left the central bank in a quandary and historically inflation has supported the gold boom, in addition to forcing central banks to give more importance to their interest rate hikes. Investors have turned to the Fed's payroll data, which has been weak.

Gold shows a strange behavior in the current situation, but if the average price of gold in the last 15 days breaks the price of ૭ 1211 per ounce, gold will enter the bullish circle again. Only time will tell which direction gold will take.

Silver prices fluctuated briefly in the global market, but fell 2.1 per cent last week and are currently quoted at 5 cents an ounce on Thursday. Believing. On October 1, the long-term silver trades in the Comex market showed a low of 5 contracts, while the short-term silver trades showed a low of 4 contracts and the price of a high of 1,511 contracts has risen by 7 cents.

Old gold revenues have declined slightly. The show-room will be crowded and the Dussehra and Diwali will be a good housewarming due to the low price of gold, business circles said. The government is confused as gold imports rose from 16 tonnes in September 2020 to 61 tonnes in September 2021. There are fears that the dollar's reserves will fall as international oil prices remain high, and the gold import cost will remain high at Rs 9.5 against the dollar, which will be a matter of concern for the government.

Jewelery market circles say that gold bars and coins will sell more than jewelery this Diwali due to fears of pandemics. Importers are importing gold by fixing the dollar-rupee exchange rate at all prices.

Overall, gold seems to be slowly improving with fluctuations and Diwali is likely to show a price of Rs 2,000 per 10 grams.

The showroom is full of housewives. Coin makers are making coins by buying silver at every price while creating new stock for showroom festivals. Importers import silver by fixing a dollar-rupee price at each price. The old silver income is negligible. Overall, the price of silver will hover between Rs 2,000 and Rs 5,000 per kg.