Bilateral fluctuations in gold prices

- Bullion Beats: Dinesh Parekh

- Corona's new virus appears in South Africa

In international markets, the dollar strengthened and gold began to depreciate as US President Joe Biden re-appointed Jeram Powell as Fed chairman. At New York's Comex market, gold fell to ડો 50 an ounce from two large contracts sold for સ 1.5 billion, and gold fell below ૮ 1,200 an ounce earlier in the week. However, with the advent of the new corona virus in South Africa, gold prices have risen again.

The resumption of the Fed's chairmanship will not change the Fed's policy and will signal an increase in interest rates. There are also plans to cut bond purchases. Thus, Jeram Powell's policy of strengthening the dollar against inflation will support the market.

Various names are at the forefront of the game syndicate, which has been pushing gold prices under pressure in New York's Comex market, and it is learned that the only thing that has broken the gold price is the sale of badge minutes. It would not be surprising if the Fed raises interest rates in 207 and breaks the flow of money into the market and buys bonds to zero. Rising interest rates and declining financial flows will reduce the number of investors in gold, resulting in a softening of gold. The news that a huge amount of gold has been found in the Canadian island of Newfoundland, the company's share price rose from ૧ 1.50 to ૩ 19.50 per share. The island of Newfoundland, Canada, in the northern corner of the United States, will see the biggest 'Gold Rush' of 2021. In this new excavation, it has been reported that excavation of 1 ton of clay will yield 2.5 grams of gold. The minutes of the Fed meeting stated that each member voted to raise interest rates. Till the end of this year, there is no reason for gold to rise sharply and once it goes down, it will hit around ૮ 1,200 an ounce.

The above seems imaginary and at the present stage, silver will soon hit between ૨૪ 5 and ૨૬ 8 an ounce. Domestic gold prices fell by Rs 1,000 per ten grams as a result of global declines and at the same time households were stagnant and traders were confused so they put a brake on buying.

The market debate is gaining momentum that the government will increase the GST from three per cent to five per cent. At this stage, traders and importers will be very calculated to limit the import and purchase of gold before Christmas and cannot imagine where the changing prices of this tax structure will go, so traders have stopped buying despite the low gold prices.

Rising GST will encourage smuggling and smugglers, who have a 15/12 per cent gap between global prices and local prices, will try new techniques and demand gold. Traders will be forced to work without bills resulting in a side effect on government revenue.

It is to be noted that for the last several months, the gap between futures and spot gold prices has been around Rs.1000 per ten grams. A year ago, the gap between gold futures and spot gold was Rs 1,200 / 1,200 per ten grams. Because the period of Rs.1000 has gone up to Rs.1200 is a worrying move.