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Gold and silver price were trading flat again on August 5 in early trade. After multiple flat trading sessions since August 3, gold price was at Rs 48,010/10 gms according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). On August 4, it was Rs 48,022/10 gms. The price of 22 carat gold also held steady at Rs 43,976/10 gms from previous close of Rs 43,988/10 gms. Silver also fell by Rs 600/kg amid sluggish demand across the trading community in early trade.
“The 200 DEMA capped rallies as precious metal was hit with some selling pressure and gets hammered again around $1835 levels and closed mostly unchanged. Gold gave up all of its daily gains as momentum in the service sector was stronger than expected in July, basis latest data from the ISM,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold price is stuck in the range of Rs 48,000 and is going to be sensitive to momentum indicators, currency, bond yield and economic growth numbers while its inability to hold gains is worrying. The outlook for today is slightly bearish due to out-performance of Indian equity market,” added Matta.
Silver down
After passing the Rs 68,000 level, silver witnessed a continuous drop since July 29. On August 3 silver again crossed the phycological level of Rs 68,000/ kg, but on August 5 silver price dropped by Rs 583/kg and came down to Rs 67,572/kg from Rs 68,155/kg on August 4.
Experts think it will come down below Rs 67,000/kg level very soon and gain stability at that level.
“Gold and silver showed mixed movement since last week. These two metals are giving some positive signal on daily chart, momentum indicator RSI also indicating the same on hourly chart, So traders are advised to create fresh long position near given support levels,” said Amit Khare, assistant vice-president, research commodities, Ganganagar Commodities Ltd.
“Since the Federal Reserve uses the data from the Labor Department’s jobs report as a key data set used to shape monetary policy, international and domestic market participants will focus intently on Friday’s numbers. With expectations anticipating an extremely strong jobs report if the report comes in as weak as today’s ADP report as we could expect the Federal Reserve to continue its extremely accommodative and dovish monetary policy, which would be bullish for bullion prices,” added Khare.