Gold down Rs 230/10 gm, silver flat in early trade

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Gold price witnessed a dip in the Indian markets on July 27 following muted trend in international spot prices, as investors turned a bit cautious ahead of this week’s US Federal Reserve meeting outcome. The price of gold (24 carat) stands at Rs 47, 697 on Tuesday, down by Rs 230 from yesterday’s level at Rs 47,927, according to the rate of Indian Bullion and Jewellers Association (IBJA).

The price of 22 carat gold dipped by Rs 210 to Rs 43,690 today against Rs 43,900 per 10 grams on July 26. Gold and silver were almost flat in the international markets on July 26.

“Gold is lacking a catalyst in the current growth environment and is keeping investors on the sidelines. Bears are tightening their grip on the precious metal while steady to weaker global equity market helped in limiting selling pressure on the safe heaven. It’s becoming a sell on rise market and we are slowly moving towards the critical support range of $1765-$1750,” said Sandeep Matta, founder, TRADEIT Investment Advisor.

Silver remained flat with a price drop by Rs 50 to Rs 67,220 per kg in early trade from Rs 67,270 per kg in the previous trade on July 26.

Weaker dollar

“Steady to weaker US stock indexes at midday and weaker global stock markets overnight are limiting selling pressure on the metals. The marketplace will be watching a meeting between the US and China officials this week, with early indications being that the two nations remain very wary of each other. Silver is looking stronger than gold in daily chart and creating a positive divergence in daily chart,” said Amit Khare, AVP, research commodities, Ganganagar Commodities Ltd.

Imports

Significantly, gold imports jumped more than 11 times to $7.9 billion (Rs 58,573) crore during the April-June quarter of FY22, the high number being attributed to the low base effect in the wake of the Covid-19 pandemic, according to Union commerce ministry data.

Imports of the yellow metal had plunged to $688 million (Rs 5,209 crore) in Q1 of FY21. But so far it didin’t have much effect on the price of the gold, feel experts.

Silver imports, however, dipped by almost 94% per cent to $39.4 million in Q1 of the current financial year.