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Dhanteras and Diwali are around the corner and Indian bullion markets witnessed a small drop in price on Monday in early trading session. The 24-carat variant of the yellow metal was trading at Rs 47,776/10 gm, down by Rs 151/10 gm from Friday’s price of Rs 47,927/10 gm, as per the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was also down by Rs 138 to Rs 43,763/10 gm from the previous day’s rate of Rs 43,901/10 gm.

“The demand of gold is also expected to increase during the festive season. We expect gold to be range bound this week with an upward bias, but Monday’s trend is not showing that. The expectation of early stimulus tapering by US Fed is dragging gold prices down whereas fear of economic bottlenecks towards its recovery is increasing the safe haven appeal,” said Ravi Singh, vice president & head of research, ShareIndia.

“Gold prices were sharply lower and headed for a bearish weekly low close in early US trading on Friday. Rising US treasury yields and a rebound in the US dollar index on this day are all working against the precious metals market bulls,” said Amit Khare, AVP- research commodities, Ganganagar Commodity Limited.

Silver down too

Like yellow metal, white metal was also down in the early trading session on November 1. The white metal was trading at Rs 64,368/kg on November 1, down by Rs 140/kg from yesterday’s price of Rs 64,508/kg.

“We saw some profit booking in bullions at upper levels. As per technical chart both gold and silver are ready for upside movement again this week. Momentum indicator RSI is also indicating the same on daily charts,” added Khare.