Gold-Silver Buying: Iran-Israel conflict is currently the biggest topic of discussion in the world and the country and global markets are crashing due to its concerns. Leave aside the stock market, there is a huge stir in the commodity market. However, if we look at gold and silver, the demand from stockists and retail shopping has increased during the current festivals. Due to this, the prices of gold and silver have increased on Thursday. Jewelers said that the sentiments improved due to increase in demand at the beginning of Navratri in India and due to the strong belief that the auspicious shopping week has started, an all-time rise in gold and silver prices was seen in the domestic bullion market.
Kama Jewelery Of MD Colin Shah It says that gold has given excellent returns in the last 14 years and this confirms that it is a safe asset. Even though the shadow of global uncertainty is looming over the prices of gold, today while the global markets experienced continuous shocks of collapse, gold and silver remained on the rise in the domestic market.
Now the question arises whether it is still time to buy?
So far this year, gold has given returns of more than 29 percent in Indian Rupees and more than 28 percent in US Dollars. Current year (YTD) profit is the highest in last 14 years (in dollar and INR terms). In the last 15 years, gold has given an average return of 11.7 percent. Interestingly, current year (YTD) gold returns have outperformed the returns posted by Nifty in INR terms.
Know the spectacular performance of gold
The reason behind the excellent performance of gold is the beginning of the cycle of interest rate cuts in America. There is great hope of further reduction in its rates in future. Geopolitical tension between Israel and Lebanon is also increasing gold prices. The demand for gold is expected to strengthen with the beginning of the festive season. Rural demand will increase with a good monsoon year. Global prices of gold are currently at the level of $2700 and it is expected that it may touch $3000. From the investment point of view, there is hope of good returns on purchasing it because gold has given the best returns in the last 14 years in this year alone, while there is still time for the year to end.
Know how the condition of gold and silver was in India
Commodity markets were closed on Wednesday on the occasion of Mahatma Gandhi Jayanti, but today when the bullion market opened, due to Iran-Israel tension the stock markets also fell and the commodity market was also affected. However, if we look at the commodity market, according to All India Bullion Association, gold has increased by Rs 200 to the highest level of Rs 78,300 per 10 grams. On Tuesday it closed at Rs 78,100 per 10 grams. Silver also jumped by Rs 665 to Rs 93,165 per kg, which was at Rs 92,500 per kg in Tuesday’s closing. At the same time, gold of 22 carat purity rose by Rs 200 to its all-time high of Rs 77,900 per 10 grams. On Tuesday, gold closed at Rs 77,700 per 10 grams.
How was the gold trading on MCX?
In futures trade, December contract gold on Multi Commodity Exchange (MCX) fell by Rs 440 or 0.58 percent to Rs 75,950 per 10 grams. However, on MCX, silver has risen by Rs 225 or 0.25 percent to Rs 91,600 per kg.
Impact of Iran-Israel tension visible on precious metals
Israel has openly said that it will respond strongly to Iran’s attacks. Due to this air battle and ground conflict, the prices of precious metals may still get support at lower levels. Since gold is considered a safe asset class and an investment giving excellent returns, it is expected to see more growth during global geo-political tensions.
What do experts say
Harish V, head of commodities, Geojit Financial Services Said that the possibility of increase in demand from gold-silver jewelers amid the peak festival season and weak Indian rupee has also helped the commodity in the domestic market.
Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities Said that the mood of the bullion market was bad on Thursday. There was a decline in American stocks on Wednesday and they closed below. Due to this, precious metals were affected due to the rise in US dollar and treasury yield.
According to Manish Sharma, AVP Commodities and Currencies, Anand Rathi Shares and Stock Brokers, one should keep an eye on these things regarding gold-
On Thursday, we will have to keep an eye on American jobs data including job data in America, which can become some indicators and provide direction for the gold rate.
The positive sentiment being created in the market regarding China’s recent steps regarding interest rates will especially impact the silver rate and it will be able to outperform gold. This means that in the medium term, silver will get better returns than gold.
How gold and silver are visible at the international level
During Asian trading, gold fell 0.17 percent on Comex and was trading at US $ 2665.20 an ounce. Gold traded with a slight decline on COMEX. Whereas silver fell by 0.36 percent to $ 31.81 an ounce.
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