Indians still prefer cash despite rising digital payments

The white metal was trading at Rs 65,793/kg on October 26, up by marginally Rs 16 from Monday's price of Rs 65,777/kg.

Despite positive domestic demand the Indian bullion markets remained more or less flat in early trades on October 26. Both gold and silver price were hovering around Rs 48,200 and Rs 65,700 respectively. The 24-carat variant of the yellow metal was trading at Rs 48,346/10 gm, up by Rs 298/10 gm from Monday’s price of Rs 48,048/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was up by Rs 273 to Rs 44,285/10 gm from the previous day’s rate of Rs 44,012/10 gm.

“Currently gold is at around Rs 48,300. It is displaying bullish trends after it broke the major resistance level of 47,170. The strategy for trading in gold should be to buy at support levels. The metal can find support at around 47,120 and 47,540 levels,” said Manoj Dalmia, founder and director, Proficient Equities Limited.

“The target for gold, based on the width of bearish channel it made previously, can be the zone between 48,600 and 48,650 zone. Resistance levels in gold are at 48,300 and 48,700 zone,” he added.

“The increasing demand in domestic gold due to improved retail buying and rising footfalls at jewellery showrooms due to lucrative discounts and offers has held the prices at Rs 48,300 zone,” said Ravi Singh, vice president & head of research, ShareIndia.

Silver trading flat

On the other hand, silver was also trading at the same zone as yesterday. The white metal was trading at Rs 65,793/kg on October 26, up by marginally Rs 16 from Monday‘s price of Rs 65,777/kg.

“Gold and silver prices were higher in midday US trading on Monday, with the yellow metal pushing back above the psychologically important $1,800.00 level and as silver closed in on $25.00. The precious metal markets are boosted by increasing worries about rising price inflation,” said Amit Khare, AVP-Research Commodities, Ganganagar Commodity Limited.

“Gold and silver both showed slight upside movement on the October 25 trading session, both in the Multi-Commodity Exchange (MCX) and spot market. Yesterday we saw follow-up buying in bullions. Bullions prices are continuously rising over the past three weeks. Now both the metals are trading at overbought zone. Profit booking is pending in gold and silver. Momentum indicator RSI is also indicating the same on daily charts. So, traders are advised to book their longs. They can make fresh short positions in gold and silver in small bounce near given resistance levels,” added Khare.