After two consecutive days of heavy decline, the bullion market has suddenly returned to a huge rise on Monday. Gold prices have increased by Rs 2,440 per 10 grams within a single day. On the other hand, silver has also taken a huge leap and registered a huge gain of Rs 5,300 per kg. According to the latest data of All India Bullion Association, after this huge surge, gold has now reached a new and 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 rapidly overnight? Let us understand the complete mathematics behind this in very simple language.
Reason for sudden return of heavy buying in the market
According to all the market experts, there are many very important reasons hidden behind this sharp rise in the global market. There was a lot of sluggishness in the domestic market for the last two days, but as soon as the prices of crude oil fell in the international market, investors again turned towards gold as a safe investment option. Due to the cheapening of crude oil, there is strong hope that inflation pressure will reduce across the world. According to Kainat Chainwala of Kotak Securities, this expectation of reduction in inflationary pressure has promoted buying in the market very rapidly. Apart from this, the bullion market has also got direct and positive benefit from the continuously decreasing tension in West Asia. Saumil Gandhi of HDFC Securities says that the weakening of the US dollar and the fall in US bond yields have also given strong support to the yellow metal.
Direct impact of foreign markets on domestic market
This spectacular bullish trend has completely dominated not only India but also foreign markets. Internationally, spot gold has crossed $4,095.30 an ounce with a huge gain of about $42. Similarly, spot silver has also made a strong gain of 1.47 percent and reached $ 59.04 per ounce. However, if we talk about India, this growth figure could have been even bigger, but the strength of the Indian Rupee has definitely limited this growth in the domestic market. Jatin Trivedi of LKP Securities has informed that even on MCX, gold was seen trading around Rs 1,43,675 with an increase of about half a percent, while on COMEX it has reached close to $ 4,090.
What will be the new movement of gold and silver in future?
Pranav Mer of JM Financial Services believes that the entire movement of the market in the coming days will mainly depend on the conditions in West Asia. Along with this, the eyes of the whole world are also fixed on the new inflation data coming from America, Japan and Eurozone. Apart from this, US GDP data, consumer confidence data and weekly jobless claims report will also decide the direction of the market in the coming times. This week, important decisions 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 within the range of Rs 1,42,000 to Rs 1,45,500.
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