gold Silver
After two consecutive days of decline, the bullion market suddenly returned on Monday. Gold prices have increased by Rs 2,440 per 10 grams in a single day. At the same time, silver has also taken a huge leap and registered a huge increase of Rs 5,300 per kg. According to the data of All India Bullion Association, after this huge surge, gold has now reached a record level of Rs 1,49,640 and silver Rs 2,30,000. After all, what happened suddenly that the rates of precious metals increased so much overnight? Let us understand the complete mathematics behind this.
Heavy buying suddenly returned in the market
According to market experts, there are many important reasons hidden behind this sharp rise in the global market. There was a lull in the market for the last two days, but as soon as the prices of crude oil fell, investors again turned to gold as a safe investment. Due to cheapness of crude oil, there is hope of reduction in inflation across the world. According to Kainaat Chainwala of Kotak Securities, this expectation of reduction in inflationary pressure gave a rapid boost to buying in the market. Apart from this, the bullion market has also directly benefited from the decreasing tension in West Asia. Saumil Gandhi of HDFC Securities says that the yellow metal has got strong support due to the weakening of the US dollar and the fall in US bond yields.
Direct impact of foreign markets visible
This spectacular upward trend dominated not only the domestic market but also the foreign markets. Internationally, spot gold crossed $4,095.30 an ounce with a huge gain of about $42. Similarly, spot silver also increased by 1.47 percent and reached $ 59.04 per ounce. However, this surge figure in India could have been even bigger, but the strength of the Indian rupee limited this surge in the domestic market a bit. Jatin Trivedi of LKP Securities said that on MCX, gold was seen trading around Rs 1,43,675 with an increase of about half a percent, while on COMEX it reached close to $ 4,090.
What will be the gold rates in future?
Pranav Mer of JM Financial Services believes that the market movement in the coming days will largely depend on the conditions in West Asia. Along with this, the eyes of the whole world are also fixed on the inflation data coming from America, Japan and Eurozone. Apart from this, America’s GDP figures, consumer confidence data and weekly jobless claims report will also decide the market movement. This week, the decisions taken on interest rates by the US Federal Reserve, Bank of England and Bank of Japan will decide the new direction of gold. Technical experts estimate that at present gold on MCX can trade in the range of Rs 1,42,000 to Rs 1,45,500.
