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Gold and silver prices are still under pressure. On September 20, the Indian bullion market declined again to maintain the trend visible last week. Both gold and silver were down and there are no signs of recovery in the near future. The 24-carat variant of the yellow metal was trading at Rs 46,185/10 gm, down by Rs 148/10 gm from the previous close of Rs 46,333/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was also down by Rs 136 and reached Rs 42,305/10 gm on September 20. The previous close was Rs 42,441/10 gm. 

“Gold is struggling to find new buyers and hit four weeks low while trading below $1,750/oz as market participants are expecting less dovish commentary from Fed monetary policy this week. The big catalyst on precious metal selling last week was better-than-expected retail sales numbers which were missing in US economy from quite a while. Gold on MCX has also been following global directives and trading in the danger zone. The precious metal is trading around the technical support and may see some speculative interest around the level of Rs 46,000/10 gm,” said Sandeep Matta, founder, TRADEIT Investment Advisor.

“Gold and silver prices were lower in midday US trading on Friday. Gold prices hit a four-week low and silver a six-week low last week. Stronger-than-expected US economic reports on Thursday evening, which rallied the US dollar index, helped to send gold and silver prices to the bottom. Last week has been extremely difficult for gold losing approximately $36. Gold futures was the basis of the most active December 2021 contract that opened on Monday at $1,790 and is currently fixed at $1,753.90. Today gold continued its decline, although only fractionally, declining $2.80 on the day,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

Silver at Rs 59,000/kg level

Silver again nosedived and reached almost Rs 59,500/kg level on September 20. Experts feel this time silver may create a record low. It has already come down to Rs 59,500/kg level. The price of the white metal witnessed a slump in the early trading session on September 20 as it was trading at Rs 59,875/kg, down by Rs 1,188/kg from previous close of Rs 61,063/kg.

“Gold and silver both showed a downward movement since the September 14 trading session. On the Multi-Commodity Exchange (MCX), October gold and silver both contracted on Monday trading session. Today we have seen follow-up selling pressure in bullion due to stronger-than-expected US economic reports on Thursday evening. As per technical charts both metals are trading at oversold zone, which means any time we can see a good short covering rally in bullion,” added Khare.