The surge in gold prices was not sustained due to the US Fed’s decision not to raise interest rates, and once again the gold-silver luster has started to fade. The strengthening of the dollar and the rise in bond yields put pressure on gold, but is this the right opportunity to buy gold and silver. Gold is still getting about eleven thousand rupees cheaper than its life time high. If you are also planning to buy gold in a few days, what should you do? Can there be a further decline from here or is this the right opportunity to buy gold at this level. Today, special shows have been brought on this.
In this, CNBC-Awaaz has joined NS Ramaswamy of Ventura Securities, Rahul Mehta of Silver Emporium, Naveen Mathur of Anand Rathi and Kumar Jain of Bombay Jewelers Association to discuss investment.
Why gold and silver fall
This is also one of the reasons behind the decline of gold and silver at the 14-month high of US Bond Yeild. The US 10 Year Bond Yeild has crossed 1.75 percent. On the other hand, weakness in silver has increased due to strong dollar. On the other hand, the US-China dialogue remains under watch over Biden becoming president. Apart from this, gold and silver loses due to strong dollar and the rupee has seen double pressure in domestic markets.
Gold-Silver: Golden Chance
Due to the fall in gold and silver, the rise in retail demand is possible. Now investment demand will also increase along with jewelery. Later weddings season is coming, which will increase the demand for jewelery. However, purchases are expected to return from lower levels. At this time, gold has slipped nearly 20 percent from record highs.
Trading in silver
At this time, along with gold, the pressure on silver continues. At this time, the price is down about Rs 10,500 from the all-time high. On 7 Aug 2020 it set a record high of 77,949. On the other hand, Comex has seen a decline of over 4 percent in 1 month. But silver has been supported by good industrial demand. While silver on MCX has seen an increase of 88 percent in 1 year.
Jewelery demand will increase
Experts believe that now jewelery demand will look increasing. Switzerland sent gold to China in Feb after Sep. Shipment to India has reached a several-year high in Feb. According to India Ratings, a 35 percent jump in the retail jewelery market is possible. At the same time, the economy will improve, the demand will improve with the softening in the price. On the other hand, jewelery demand will get a boost in weddings season. According to the data, 9000 kg of digital gold has been sold in the last 3 years.
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