December , 2022
Price of yellow metal at a hike on constant basis
17:35 pm

Pritha Mishra

The gold market is seeing constant profits as prices are constantly increasing for the yellow metal. Following clear global indications, this month gold prices rose in Indian markets to a nine-month high. Silver prices increased by 1% to reach `66,570 per kg on the MCX while gold futures increased by 0.9% to Rs.49,292 per 10 grams. Gold increased 0.6% to $1,860.59 per ounce on international markets as heated US inflation data encouraged investors to place their money in the precious metal’s safety. According to analysts, if inflation fears continue to rule public opinion, gold, which is viewed as a hedge against inflation, would be well supported.

The conflicting consequences of consistently high inflation and central banks boosting interest rates in response have been what has propelled the gold market narrative. Following the release of the US Federal Reserve’s November FOMC minutes, gold prices once more surpassed $1,750/oz (Fed). According to the minutes, the decision-makers agreed that the committee had taken strong measures to moderate aggregate demand in order to better align it with aggregate supply. This was in reference to the effects of monetary policy actions. The minutes also stated that in response to the committee’s policy decisions, financial conditions had dramatically tightened and their impacts could be seen in the most interest rate-sensitive areas of the economy, such as residential investment and some parts of business investment. A lot of people who are directly related to the market expressed their gratitude for the role that monetary policy measures and communications had played in maintaining firmly anchored longer-term inflation expectations, which would have made it easier for inflation to reach the committee’s longer-term target of 2%.

Gold price in the US market

The gold price fell below $1,800 for the first time since early February as the markets reopened after the US Fourth of July holiday. Since gold does not pay interest and becomes more expensive for buyers using other currencies, its price tends to move in the opposite direction of that of the US dollar. After further indications of quickening inflation prompted speculations that the Fed will adopt even more severe measures to rein in price hikes, the metal maintained its drop into mid-July, marking the longest losing run for gold since November 2020. On September 14, 2022, spot gold prices inched down to $1,700 per ounce, the lowest level in more than two years, as the metal fought back for moderate gains. Gold has increased by over 6.5% over the past month as a result of the US Federal Reserve’s indications that it may be slowing down its cycle of interest rate increases. On November 26, 2022, the price of gold was $1,753.

Where is gold-silver standing in the global market?

When it comes to the price of gold in the global market, an increase has been seen. At the same time, a fall in the price of silver has been seen. Gold is currently being sold for $1,757.95 per ounce. There has been a 0.33% increase in this. On the other side, the price of silver has decreased - trending at $ 21.47 per ounce of silver. The price of it has decreased by 0.52%.

Condition of gold in Indian Bullion market 

However, when it comes to the Indian bullion market, both the price of gold and silver fell on November 24, 2022. In Delhi, gold increased by Rs.323 to close at Rs.53,039 for 10 kilos. Silver, on the other hand, increased by `639 and ended at Rs.62,590 per kilogramme. 

Add new comment

Filtered HTML

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <blockquote> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.