Gold trades flat; silver falls Rs 1,200 per kg

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After a day’s gap Indian bullion markets were trading almost flat on Friday early trade. The price of gold and silver were almost the same in early trades on August 20 with the 24 carat version opening at Rs 47,411/10 gm against Rs 47,448/10 gm on August 18 – down by Rs 37 per 10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). On the other hand, 22 carat gold was trading at Rs 43,428/10 gm, down by Rs 34 from Rs 43,462/10 gm.

Silver is down by almost Rs 1,200/kg today and trading around Rs 62,500/kg level on Friday.

“The gold price over the past few days have been closing mostly flat and in today’s early trade it is also keeping that same momentum. Yellow metal was stuck in the range of $1,770/oz-$1,800/oz. Market participants will be eyeing an upcoming economic symposium which could become the new catalyst for gold to surge,” said Sandeep Matta, founder, TRADEIT Investment Advisor.

“Gold prices are almost unchanged in midday US trading on Thursday. Some safe-haven demand is featured amid keener risk aversion in the marketplace this week. The Fed also continues to lean toward tightening its monetary policy as early as this fall. Traders and investors are looking ahead to the annual Federal Reserve symposium in Jackson Hole, Wyoming, next week,” said Amit Khare, AVP, research commodities, Ganganagar Commodities Ltd.

“Technically, gold bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. Gold and silver showed a mixed movement on Thursday evening session on the Multi-Commodity Exchange (MCX) too,” Khare added.

Silver drops again

After rising over the past two days, silver again slipped below Rs 62,500/kg level. Silver has witnessed a good drop in price on Friday again. On August 20, silver was trading at Rs 62,471/kg down by Rs 1,186 from Rs 63,657/kg on August 18.

Experts feel, silver might go down to Rs 61,000/kg levels very soon.

“Gold and silver on MCX are also finding its major support on Rs 47,000 and Rs 63,000 and trading with short term bullish technical advantage. The outlook is positive for precious metals particularly due to heavy selloff in global equity market and increasing cases of Delta variant globally. Traders are advised to follow key levels both the sides and investors can accumulate gold on every dip,” added Matta from TRADEIT.

“Yesterday some profit booking was seen in bullions from higher levels. Gold and silver are making bottom, momentum indicator RSI creating a positive divergence in silver in 4-hourly chart, so traders are advised to create fresh longs positions in gold and silver,” Amit Khare further said.