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After a flat trading season on Tuesday, Indian bullion markets were a bit low in the early trading season on Wednesday. The 24-carat variant of the yellow metal was trading at Rs 47,849/10 gm, down by Rs 265/10 gm from previous day’s price of Rs 48,114/10 gm, according to rates provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was at Rs 43,830/10 gm, down by Rs 242 from previous day’s rate of Rs 44,072/10 gm.

“Gold and silver prices were lower in midday US trading on Tuesday and lost early gains as Fed chairman Jerome Powell “wrong-footed” the marketplace by suggesting that a tighter monetary policy is necessary to keep inflation at bay and to keep supply chains moving along,” said Amit Khare, AVP- research commodities, Ganganagar Commodity Limited.

“The new Corona virus variant is creating an atmosphere of uncertainty in the global markets due to the possible consequences on the economic activities. It has a negative effect on gold price, but it will find support as the US may prefer to delay the tapering decision,” said Ravi Singh, vice president and head of research, ShareIndia.

Unlike yellow metal, silver was trading flat on Wednesday in the early session. The white metal was trading at Rs 62,218/kg, up by Rs 210/kg from the previous day’s price of Rs 62,008/kg on December 1.

“Gold and silver showed no big movement on November 30 trading session and also kept up the trend  on December 1 early session. Now we are seeing huge volatility booking in bullions and this may continue for the full month of December. The current levels are the best prices for short term investors,” Khare told Money9.

“As per technical charts overall structure of gold and silver are looking positive. Momentum indicator RSI is also indicating the same in hourly charts and both metals are trading at oversold zone,” he added further.