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White metal was down more than Rs 1,250/kg in the early trade on October 27.

After a brief jump on Monday and Tuesday, Indian bullion markets again witnessed a slump on Wednesday in the early trading session. The 24-carat variant of the yellow metal was trading at Rs 47,817/10 gm, down by Rs 529/10 gm from Tuesday’s price of Rs 48,346/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was down by Rs 485 to Rs 43,800/10 gm from the previous rate of Rs 44,285/10 gm.

“Investors are trading cautiously this week due to uncertainty over the timing of European Central Bank rate hikes amid rising inflation concerns. That pulled the gold rate further down to Rs 47,800. But after the continuous rally, gold has witnessed profit booking yesterday which may sustain for few more trading sessions,” said Ravi Singh, vice president & head of research, ShareIndia.

“The increasing demand in domestic gold due to improved retail buying and rising footfall at jewellery showrooms due to attractive Diwali discounts and offers are still holding the prices in the Rs 47,800 zone,” said Manoj Dalmia, founder and director, Proficient Equities Limited.

Silver is slightly up

Just like yellow metal, silver was also trading in the lower zone on Wednesday’s early trade. White metal was down more than Rs 1,250/kg in the early trade on October 27. Silver was trading at Rs 64,542/kg, down Rs 1,251 from Tuesday‘s price of Rs 65,793/kg, according to the IBJA rate.

“Gold and silver prices were lower at midday on Tuesday on some normal backing and filling on the charts following recent gains. Bulls remain comfortable at present in both metals, as near-term price uptrends are in place and the overall path of least resistance is sideways to higher,” said Amit Khare, AVP, research commodities, Ganganagar Commodity Limited.

“Gold and silver showed profit booking since October 25 trading session, both in MCX and spot market. Yesterday we saw some profit booking in bullions at higher levels which may continue for next three-four trading sessions. The momentum indicator is RSI also indicating the same on the daily chart. So traders are advised to make fresh short positions in gold and silver in small bounce near given resistance levels,” added Khare.