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Due to lower-than-expected demand and multiple overseas factors Indian gold and silver prices remained flat on Friday, October 22 in early trades. The 24-carat variant of the yellow metal was trading at Rs 47,641/10 gm, up by only Rs 55/10 gm from Thursday’s price of Rs 47,586/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was up by Rs 50 to Rs 43,639/10 gm from the previous rate of Rs 43,589/10 gm.

“Gold traded in a range bound zone yesterday withholding the pressure from a stronger dollar and higher US treasury yields. Traders are closely monitoring the remarks from Fed officials for clarity on the timeline of bond tapering,” said Ravi Singh, vice president & head of research, ShareIndia.

“We expect higher volatility in gold due to increased demand during forthcoming festive season across the country. As the Indian marriage season will start from November, we may see stable buying in gold and silver too,” he added further.

“Gold continued to trade firm holding on to the gains noted earlier this week. However, price is yet to break past the $1,800/oz level and with choppiness in larger financial markets, mixed to positive trade is likely,” said Ravindra Rao, CMT, VP- head commodity research at Kotak Securities.

Silver down

When gold was very marginally up in early trading session, silver remained down in early trading season on October 22. The white metal was trading in negative zone today. Silver was trading at Rs 64,891/kg, down by Rs 553 from previous day’s price of Rs 65,444/kg, according to IBJA rate.

“Gold and silver showed mixed movement in today’s trading session in both the markets, i.e. spot and multi-commodity exchange. We saw some safe haven buying in bullions at lower levels especially in silver. Overall, technical charts of gold and silver are strong. Momentum indicator RSI is also indicating the same. It means more upside potential for bullions. So, traders are advised to make fresh long positions in gold,” told a bullion expert from Mumbai.