Gold reaches a five-month high of Rs 51,000, while silver crosses the Rs 67,000 mark.
Rising inflation, no rise in interest rates, no buying of hedge funds-central banks
The haven gold has started the bullish trend again. This is because the recent meeting of the Federal Reserve has postponed the decision to raise interest rates.
In the international market, gold is quoted at a five-month high of 18 1865 while silver is quoted at a three-month high of 25 25.10. In Ahmedabad, behind the global market, gold has risen sharply by Rs 800 to close at Rs 51,800 per 10 grams. In comparison, silver has jumped to the level of 67000.
Rising global crude oil prices and food prices have pushed up inflation. In addition, reports of a resurgence of corona cases in China, Russia, Europe, and Germany, which are expected to cripple emerging economies globally, are supporting the market.
According to Boolean analysts, if gold closes above 18 1830 every week, it could go up to 00 1900 and then to 1970 1970 shortly. While in the domestic market, there are indications that gold may reach 52000 and silver 72000 by the end of the year. In the current calendar year, gold continued to be in a bearish trend after going Rs 53,500 in January and silver at Rs 73,000 in February.
The main reasons for the rise in gold-silver
- The worst data on inflation in the US since 1990. Rising demand-price for gold with rising inflation
- Gold-silver demand for weddings rises in China after festive demand
- A steady bearish trend in the dollar over the last year, with the dollar weakening and gold gaining momentum
- Increasing cases of corona in China, Russia, and Germany support the boom in the global economic downturn
source from divyabhashkar