Year Ender 2022: The ups and downs in gold were more than a roller-coaster ride, this is the important reason..

industry experts Suffice it to say that the year 2022 will be less of a roller-coaster ride of ups and downs than the gold market. Navneet Damani, Senior VP, Currency & Commodity, Motilal Oswal Financial Services said- The year 2022 was less of a roller-coaster ride of volatility than the bullion market. According to Damani, Comex Gold made a high around $1,935 and a low around $1,630, while silver made a high around $25 and a low around $18. There are certain factors that trigger volatility in the market such as, dollar index, aggressive monetary policy stance from major central banks, rising inflation concerns, geopolitical tensions, which led to this volatility.

Due to this ups and downs were seen

Chirag Mehta, CIO and Gazal Jain, Fund Manager Alternative Investments, Quantum AMC said in a report: Risk aversion arising out of Russia-Ukraine war pushed gold prices to an all-time high of around $2,070 in March. But later, as the geopolitical risk premium waned, with the US Federal Reserve racing hard to combat sky-high inflation, prices suffered a sharp decline. Pointing to the increase in the repo rate by the Reserve Bank of India (RBI) and the US Federal Reserve, two experts said this action resulted in an increase in funds in the US dollar from risky assets as real interest rates (US 10Y Treasury Inflation Protected Securities) indicated by) turned positive in May 2022 for the first time in two years.

Strengthened by rising inflation

Quantum AMC report said – This led to selling in gold and prices came down to a two-and-a-half-year low of $1,614. However, as inflation began to ease sequentially in the fourth quarter of 2022, investors began to expect a less aggressive Fed in 2023, and the dollar came under pressure, helping gold prices move back. Moving into 2023, we cannot be sure whether this response is appropriate, given that inflation in the US is well above the Fed’s 2 percent target, while the pace of rate hikes is slowing, said Quantum AMC officials. May be slow, but slow doesn’t necessarily mean lower rates, which the market had started anticipating.

How far can gold go next year

Besides Russia-Ukraine tensions, inflation concerns and Covid fears in China, market participants will also weigh in on slower global growth next year. Going forward, market participants will focus on the monetary policy stance from key central bankers. Changes in the dollar index and yields will also be closely watched by the market. The gold/silver ratio has also fallen from a recent peak of around 97 to around 75, supporting silver’s move. Apart from safe haven bets, advances in green technology and increased industrial demand are supporting silver prices. support can be found. Gold and silver are showing some signs of downside and for any medium to long term investor, the dip can be used as a buying opportunity for a target of Rs 82,000 in gold, Rs 58,000 in gold and Rs 73,000 in silver. Could