Commodity – Ramesh Gohil
Rising crude oil prices have pushed up inflation in countries around the world and central banks have been raising interest rates aggressively to stem rising inflation. After the US Federal Reserve raised interest rates at its June policy meeting, it is now likely to raise interest rates more aggressively at its July 6-7 meeting. Along with rising interest rates, the yield on US 10-year bond yields has also been rising, pushing up selling pressure on gold investors and new buying. Global gold prices lost સપાટી 1,300 an ounce at one point last weekend as demand for security in gold, which is generally seen at a time of rising inflation and economic uncertainty, dampened by dollar fluctuations in a market tightened by central banks. Although the downtrend then improved and again crossed the 1,200 level, the overall undertone remained soft. Despite a softening trend in global gold last week, the rupee depreciated by 71 paise against the dollar on a weekly basis in the domestic forex market, pushing up the price against the global market. Last weekend, the government on Friday hiked the import duty on gold from 5.50 per cent to 19.50 per cent with effect from June 30 to control the current account deficit. Thus, due to the increase in duty, the price of 7.5 touch standard gold in the local jewelery market on weekends has gone up by Rs 10 per gram as compared to the previous day. There was a surge of 3. It may be mentioned here that gold imports rose to 108 tonnes in May last year and there were reports of significant imports in June as well. The finance ministry said the duty was increased to control the current account deficit as the current account deficit came under pressure due to rising gold imports. Ashish Pethe, chairman of the All India Gem and Jewelery Domestic Council, said the increase in duty on gold was “surprising”. Meanwhile, at the beginning of last week, the spot price of 7.5 touch standard gold was Rs. 30.9 against the close of Rs. After opening at the level of Rs. 20.5 and above Rs. At the end of the collision in the range of 21.3. It closed at 21,31. Thus, during the week, the price is Rs. There was an improvement of 3 or 1.6 per cent. Prithviraj Kothari, managing director, Riddhi Siddhi Bullion, said retail demand was sluggish last week as the wedding season came to an end recently and now demand is likely to remain sluggish due to price hikes following the duty hike. A Mumbai-based dealer said that last week, local dealers were offering gold at a discount of આ 80 per ounce against the previous week’s price of તાં 8 per ounce, amid rising prices and sluggish demand. The dollar index hit a two-decade high in the quarter ended June and reached its highest level in five years and the highest in five years. Gold demand fell by an estimated six per cent in the late June quarter. Expressing the possibility that the US Federal Reserve will take a more aggressive approach to raising interest rates at its next policy meeting, an analyst at SMC Investments and Advisors added that concerns over global economic growth are also on the surface due to the rise in interest rates. Investors are generally reluctant to take interest-bearing assets like gold in the face of rising economic inflation and rising inflation, but the strength of the dollar index has hampered demand for gold. Therefore, in our opinion, the price of gold is likely to continue to fluctuate in both directions this week and the range of gold price in online futures is Rs 10 per gram. He expressed the possibility of 3,000 to 5,000.
Meanwhile, gold prices fell 0.1 per cent from the previous close of 1,305.31 an ounce and futures at à«® 1,301 an ounce after falling below સપાટી 1,200 an ounce at one point last weekend on the Comex section of the New York Mercantile Exchange. Quotes were around 50.
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