00:00Mr. Manoj, first of all, we would like to ask you, if we talk about the gold prices in this year,
00:10if we talk about the start of the year, and now because the 8th month is also about to end,
00:14are there any main factors that are trading with the rise in gold prices?
00:20First of all, if we talk about the rise in gold prices, we have seen a rise in gold prices since the beginning of the year.
00:27And in the international market, we have seen that gold is also trading around the lifetime highs.
00:32In the beginning of the year, if we talk about the central bank of the entire world,
00:38there was a continuous rise in interest rates.
00:41But after that, when it was seen that interest rates were going down from the central bank,
00:47which can be seen in this year, then gradually we saw an improvement in gold.
00:52Along with that, the continuous buying of global central banks has been happening in gold since the beginning of the year.
00:59And we have seen concerns about global economic growth.
01:04Along with that, geopolitical tensions are also going on here, whether it is the Russian-Ukraine war,
01:09or the tension we are seeing in the Middle East,
01:11because of which the safe event buying was also seen in gold.
01:15So there are many such factors, but mainly the buying of global central banks,
01:21and the possibility of interest rates going down from the US Fed,
01:25these are the two major reasons why we have seen a good rise in gold here.
01:30Sir, you have mentioned two major reasons, apart from that you have also mentioned the Russian-Ukraine war.
01:35So, such wars, or any such global politics, any geopolitical tension,
01:41how does it affect the prices of gold, if you can explain this a little more elaborately?
01:47Whenever there are geopolitical tensions here,
01:51then generally the public believes that they prefer to go to safe event assets than riskier assets,
01:59because riskier assets have a lot of volatility, and there is a higher possibility of loss.
02:05So, in such conditions, investors, not only in India, but all over the world,
02:10prefer to go to safe event assets.
02:13And gold is considered to be the safest asset in terms of investment.
02:20That is why we see that whenever there is such a situation,
02:23then the demand for gold increases, and because of that, there is a rise in prices here.
02:29Absolutely. Sir, if we look at the strength of the dollar, the weakness of the rupee,
02:33then how does this factor affect the prices of gold?
02:37Generally, we see that the strength of the dollar pushes gold downwards,
02:41but we have seen that ever since the US Fed has seen an increase in the probability of interest rates,
02:49and the US has been talking about the recession for the past two months,
02:53we have seen a continuous decline in the dollar index.
02:57And this week, the dollar index was down at the lower level of 13 months.
03:03Although there has been some recovery from the lower level,
03:07but the weakness in the dollar has been seen to support gold in a positive way.
03:13Along with that, we have seen that the decline in the rupee has been seen to increase continuously,
03:17and the rupee is trading around its lifetime lows.
03:20So, the decline in the rupee and the weakness of the dollar,
03:23these two factors have been seen to strengthen gold.
Comments