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With Diwali around the corner, price of gold and silver is getting dearer. Indian bullion market rose slightly higher on Thursday in early trade.  The 24-carat variant of the yellow metal was trading at Rs 48,065/10 gm, up Rs 248/10 gm from Wednesday’s price of Rs 47,817/10 gm, as per the Indian Bullion and Jewellers Association (IBJA). The price of 22-carat gold was up by Rs 228 to Rs 44,028/10 gm from the previous day’s rate of Rs 43,800/10 gm.

“Gold has comfortably taken out its top and consequently the primary downtrend is now exhausted. It has also managed to successfully absorb the supply at 100 days average and trading above it, turning the intermediate trend up for gold. In other words, it’s now a buy-on-decline regime for the yellow metal.” said Manoj Dalmia, founder and director, Proficient Equities Limited.

In very short term 47600 has become support and gold may be bought on weakness above this level. The intermediate uptrend remains active as long as gold stays above 47200 and has a target of 48500 and beyond, he added.

“The gold market is moving sideways as the traders are awaiting the outcome of European Central Banks (ECB) meeting scheduled in this week and next week. We expect the sideways movement in gold to continue for few days. Besides, the fear of delta variant of corona virus may trigger an upward move in gold which may continue till the festival season ends.” said Ravi Singh, vice president & head of research, ShareIndia.

Silver is almost flat

Like yellow metal, white metal was also trading in the positive zone on October 28 trading session. The white metal was trading at Rs 64,699/kg on October 28, up by only Rs 157/kg from Wednesday ‘s price of Rs 64,542/kg.

“Gold and silver prices were higher in midday US trading on Thursday, supported by a weaker U.S. dollar index and falling U.S. Treasury yield. Trading was choppy and on both sides of unchanged today, as traders are awaiting new fundamental developments to move the precious metals markets. 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 some positive movement on the October 28 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,” added Khare.