An ounce of gold is already at $2,400
- According to Bank of America estimate Chance to reach $3,000 by the end of the year
gold and silver prices are rising… domestically and internationally, their prices have risen to new record levels. Domestically, 10 grams of Pure gold has crossed the level of Rs.73,000, while silver has reached Rs.90,000 per kg. An ounce (31.10 grams) of gold in the international market rose to $2,400 in the previous session. Expectations of a Fed rate cut, geopolitical tensions and central banks significantly increasing gold reserves are the main reasons behind the rally. According to Bank of America predicts An ounce of gold could reach $3,000 by next year if the US Federal Reserve cuts interest rates in line with market expectations.
Another international financial services giant Saks also raised expectations on gold. The company, which previously estimated that an ounce of gold may rise to 2,300 dollars by the end of this year, has recently raised its estimate to 2,700 dollars.
Fed rates-gold demand inverse relationship. Demand for fixed-income bonds and market funds increases over gold when Fed rates rise. In case of falling interest rates, investments will shift from bonds to precious metals. Prices in America are as per market expectations. As it did not decrease, the expectations that the Fed rate reduction may start from June are a little lower.
At a time when the Bullion sources thought that Iran would attack Israel, the news came out. Demand for gold, known as a safe haven investment, has picked up again amid such international headwinds. While there is a chance of a minor correction in the medium term, bullion analysts say that rates are likely to rise further in the long term. In the current rally, the price of gold is showing a strong resistance at the level of 2,450-2500 dollars. Commodity experts predict that support can be found at the level of 2,300-2250 dollars.
Co Gold says jewelry purchases have come down significantly as gold prices have risen sharply. The price of 10grams gold has increased by 10 percent in the past month. It has increased to 25-30 percent in 6 months. Se Sen said that the sale of jewelry has decreased by 15-20 percent in terms of industry. Along with the increase in prices, restrictions on the amount of cash that can be carried with the coming into force of the Lok Sabha Election Code are also affecting the sales of jewelry.