Gold price today 8 September 2021: Yellow metal slides by Rs 286/10 gm; check rates in Delhi, Mumbai
"Gold has been in a no trade zone as it found it hard to find momentum despite currency weakening," said Manoj Dalmia of Proficient Equities.
Due to low demand and strong dollar sentiment gold and silver prices slipped further on September 8 in early trade. Back-to-back price drop made traders more sceptical regarding the price of bullion. The 24-carat variant of the yellow metal was trading at Rs 47,192/10 gm, down by Rs 286/10 gm from the previous close of Rs 47,478/10 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 262 and reached Rs 43,228/10 gm. It had closed at Rs 43,490/10 gm on September 7.
“The safe haven element of gold is in the doldrums and again it failed to cross its key resistance level of $1,835/oz and witnessed heavy profit booking in yesterday’s trade. Increasing dollar is the key reason behind this profit booking in precious metal as US dollar rose for second straight day. Gold on MCX also traded negatively throughout yesterday and settled below Rs 47,000 levels. Advantage has now shifted to bears and it’s becoming a sell on rise market until it crosses and sustains at $1,840/oz in the US market. That is why market are responding negatively,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold has been in a no trade zone as the precious metal found it hard to record bullish momentum despite currency weakening and real interest rates remain well entrenched in the negative territory. Prices are trading in the small tight range and consolidating around Rs 47,300 level. Globally, the precious metal was some near term bullish technical but lost its shine,” said Manoj Dalmia, director and founder, Proficient Equities.
Silver trading low
On the other hand, silver is also in negative momentum on Wednesday early trade. On September 8, the white metal witnessed a little drop. Silver was trading at Rs 64,510/kg, down by Rs 282/kg from the previous close of Rs 64,792/kg.
“Gold and silver prices were sharply lower in midday trading Tuesday. Heavy profit taking and weak long liquidation from the shorter-term futures traders were featured yesterday after prices of both metals reached around four-week highs last Friday. Gold and silver both showed a down movement on Wednesday in early trading session and probably will maintain this momentum throughout the day,” said Amit Khare, AVP, research commodities, Ganganagar Commodities Ltd.
“Yesterday we saw huge profit booking in bullions. Yesterday’s moves were perfectly as per view shared earlier. More profit booking is expected in bullions as per technical chart, momentum indicator RSI is also indicating the same. So, traders are advised to create fresh short positions in gold and silver on small bounce near given resistance if any,” added Khare.
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