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The Indian bullion markets opened flat on October 11 due to multiple domestic and overseas factors. The price of gold was flat in early trading sessions on October 11. The 24-carat variant of the yellow metal was trading at Rs 46,966/10 gm, up marginal by only Rs 25/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was up by only Rs 23 at Rs 43,021/10 gm. The previous day’s (October 8) price was Rs 42,998/10 gm.
“Gold prices jumped during the initial trading hour following the release of weaker job data in the US which was around 190,000 jobs compared to the expected count of 500,000 non-farm jobs. Precious metal is currently in the grip of bears and facing strong resistance around $1,780/oz. The long-term outlook is positive and participants should look for buying opportunities at dips. The employment report may potentially put a brake in the Federal Reserve’s plan to shift its monetary policy before the end of the year. However, the precious metal has lost most of the gains and closed only marginally up,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“US non-farm payrolls rose by 194,000 in September compared to expectations of 500,000. The unemployment rate fell to 4.8%, lowest since February 2020. Gold prices edged a slightly higher on Monday early trade,” said Ravi Singh, VP, ShareIndia.
Slight jump in silver price
The white metal was trading at Rs 61,375/kg, marginally up Rs 443 from Friday‘s price of Rs 60,932/kg.
“Gold prices have lost early gains that saw the yellow metal hit a two-week high and are now trading near steady in late-morning dealings Friday. The US jobs report that was a mixed bag is driving market action to end the trading week,” said Amit Khare, AVP, research commodities, Ganganagar Commodity Limited.
“The US treasury market, bond traders believe the Fed will remain on its ‘sooner rather than later’ track for tightening US monetary policy. That’s also what gold and silver traders also believe as midday approaches Friday, given gold and silver prices losing their early gains,” Khare added further.
“Gold and silver showed a mixed movement on October 11 trading session. We saw strong buying in gold and silver at lower levels for the last couple of sessions. Now the charts of both metals are looking strong and Indian festival seasons are also going on. So we can see continuous buying in gold and silver for this festival season that might boost sentiments in a positive way,” hoped Amit Khare.