Global gold prices rebound after hitting seven-month high

- Boolean Bits - Dinesh Parekh

- Domestic gold prices rose to Rs.57 thousand: Players eyeing the next interest rate hike in America

After an overall bullish trend was observed in the jewelery markets of the country in the last year, the beginning of the new year has also started with a boom and market experts are showing the possibility of gold and silver price fluctuations going higher in the new year as well. Gold prices in the global market rose further, recently hitting a fresh seven-month high, which has been received overseas. The price of gold in the world market rose and crossed the level of 1850 dollars per ounce and was seen trading around 1855 to 1860 dollars recently. Before this, such prices were last seen in the world market in the month of June 2022. There are also indications of premiums being quoted in the forward price of spot gold in the global market. However, at the end of the week, gold prices fell from highs of 1830 to 1848 dollars. According to the sources of the world market, the cases of Kovid and Corona are increasing again in various countries of the world including China and due to this, the prices are under pressure in the stock markets at the global level, while on the other hand, there have been indications of increasing funds among the safe haven buying in gold. Funds easing out of the stock market have seen a shift to the bullion market. Due to the fear of recession at the global level and the ongoing geopolitical tensions between various countries, world market experts are saying the possibility of gold being taken as a safe haven at the global level. The market forecasts are showing that the price of gold will increase further in the world market and reach the level of 2000 dollars per ounce. Silver prices followed by gold in the global market have also seen an upward trend since the beginning of this year after last year's boom. The price of silver in the world market has crossed the level of 24 dollars per ounce and reached close to 25 dollars. However, at the end of the week, the price was 23.35 to 23.65 dollars.

Meanwhile, the rise in prices in the world market has pushed up the import cost of domestically imported gold and silver, and as a result, the jewelery markets in the country have started the new year amidst a boom. The market has got one more reason to buy funds in gold in the world market due to the drop in the global index of dollar against various major currencies. At home, too, the rupee has risen as the dollar has fallen against the rupee in the currency market. Market sources said that while the rupee strengthened at home, the rise in the precious metals in the country's jewelery market remained relatively limited. However, the eyes of the world market players have been on the next interest rate hike in America. Market experts are showing the possibility that if interest rate growth slows down in America, then the dollar price will come under pressure in the world market and due to this, the global gold prices will go higher. The world market players are now sitting on whether the interest rate is increased by half a percent or half a percent in the meeting of the Federal Reserve in America. In the last year, the Federal Reserve of America has increased the interest rate by four times in one meeting after another, and then in the last meeting in December 2022, the interest rate has been increased by half a percent instead of half. Now the market's next move depends on whether interest rates are hiked by a percentage point or by half a percentage point in the initial meeting of the year. Meanwhile, platinum prices in the global market have risen above $1,000 an ounce and reached close to $1,055. While the price of palladium has increased above 1750 dollars. However, crude oil prices in the world market have recently collapsed. Market players have also been keeping an eye on crude prices, which tumbled by nine percent in two days. The effect of increasing cases of Corona has been seen on the price of crude oil. Generally, when crude oil prices go down, the gold boom gets a break and when crude oil prices go up, there is a positive effect on gold prices in the world market. Meanwhile, the price of gold at home is rising and has reached the level of Rs.56 thousand per 10 grams and has reached close to Rs.57 thousand while the price of silver has crossed Rs.69 thousand per kg and has reached a spot close to Rs.70 thousand. The country is currently going through a recession. Market sources were hoping that this decline will now be over with the end of Makar Sankranti and after that the seasonal demand for bridal wear in the jewelery market will pick up again.