Bilateral fluctuations in gold amid fears of rising global inflation and rising interest rates

- Bullion Bits: Dinesh Parekh

- Global gold prices came under pressure as the US dollar index rose amid interest rate hikes in the US.

At the Fed meeting in the world market, a new plan will be formulated to curb inflation and interest rates will be raised in March. The dollar has softened on news that bond yields will be cut in spite of rising job growth in the United States, which is pushing gold prices higher at ૮૩૫ 15 an ounce in support of the bullish rally. The rise in oil prices and the uncertainty over whether production will increase will also push up the gold bulls. However, fears of an interest rate hike have pushed the dollar higher again.

Analysts say gold is hovering between ૮૩ 150 and ૮૫ 120 an ounce, prompting calls for a resurgence of inflation, with the Fed's decision to halt the purchase of treasury bonds in the long run and raise interest rates three to five times in 205 years. And with US debt approaching 21 trillion, unemployment will rise. As inflation rises, investors will focus on buying gold to keep their assets safe.

Dollar fluctuations and bond yields have had an impact on gold. Treasury retreats in global markets on Wednesday have taken a backseat and the weakening dollar has forced investors to wait for the new situation and decide how much to buy gold. Will take.

Gold holdings in the London vault at the end of January 203 were 311 tonnes lower than last month and valued at ૭ 2.7 billion, including 6 gold bars, while silver holdings were 6 tonnes (-1.5 per cent) lower than last month and its value. There is no uncertainty in the gold transactions present in the London market and it is easy for everyone to take it.

Overall, gold seems to be trading between અને 150 and 15 an ounce. Demand from China and India will play an important role. In the global silver market, the price of silver, along with gold, jumped to 5 cents an ounce on Thursday, indicating that silver will remain strong.

Analysts said that silver will not rise sharply at present and will hit between 40 and 50 cents per ounce. On Thursday, gold was quoted at Rs 200 per ten grams in the jewelery market, while futures were quoted at Rs 200 per ten grams.

Old gold revenues have improved as gold prices have risen. Gold importers sell bills at a discount of Rs 500 more than futures. Marketers are disappointed that there is nothing in the budget on gold.

Criticizing the Lok Sabha for reducing the tax on diamonds to 5 per cent, an MP said that while the finance minister imposes 15 per cent tax on sanitary pads, only five per cent on diamonds - what a justice or more tax on the needs of poor women and relief to the diamond industry! Importers demand limited gold. But gold imports are likely to increase in 203.

Gold prices will determine global prices, the exchange rate of the rupee to the dollar. Demand for this specialty has grown significantly as a result of recent corporate scandals. With gold hovering above Rs 30,000 per ten grams, smuggling is on the rise. The local silver market has seen a faster rise in prices than gold.

On Thursday, silver was quoted at Rs 200 per kg and futures at Rs 200 per kg.

Bullion traders buy new ones with caution, keeping the interval between futures and spot silver at Rs 5,000.

Households in the showroom are mediocre and shopkeepers have bought as much silver as they sell, keeping the stock intact and putting a brake on new purchases. Importers sell silver at a discount of Rs 500 per kg considering the gap between futures and spot silver prices.

Old silver revenue is low but refineries supply pure silver to local silver demand by importing silver door bars.

Exports of silverware and gift articles have picked up, and exporters are feeling the pinch as exports continue.