Gold price on August 6, 2021: Yellow metal under the cosh, check rates in Delhi, Mumbai, Chennai
Gold price today: The US Labor Department’s jobs report for July will shape the bullion market, according to Amit Khare of Ganganagar Commodities
After two consecutive flat sessions, gold and silver prices were slightly down in early trade on August 6 with price of the yellow metal (24 carat) down by Rs 280 to Rs 47,731/10 gms, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). Gold traded at Rs 48,010/10 gms on August 5. The price of 22 carat gold also fell by Rs 254 to Rs 43,722 from the previous close of Rs 43,976/10 gms.
Silver also fell by Rs 580/kg amid sluggish demand across the trading community.
“Yesterday, in all markets throughout the day gold was trading with negative sentiments and the outlook for today is also likely to remain bearish. Equity market is the place where all the adventure is happening which is weighing on the precious metal,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
Gold ETF demand high
“Gold and silver showed a slight downward movement since last Tuesday. Even with prices languishing in a narrow trend, the gold market continues to build a solid base in July, seeing a modest uptick in investor inflows into gold-backed exchange-traded funds (ETFs), according to the latest report from the World Gold Council. In its monthly global ETF monitoring report, the WGC said that 11.1 tonnes of gold flowed into global ETF in July, with the value of assets under management increasing to $669 million, up 0.3% from the previous month,” said Amit Khare, assistant vice-president, research commodities, Ganganagar Commodities Ltd.
“The report said that total ETF demand currently stands at 3,636 tonnes, only 7% below the record levels reported in October, 2020 although the gold market continues to see healthy investment demand in the first quarter of 2021. Today’s release of the US Labor Department’s jobs report for July will be an important component that will shape and determine the price of the bullion market,” Khare added.
Silver at Rs 66,900/kg
After passing the Rs 68,000 level in July 27, silver prices witnessed a continuous drop since July 29. On August 3 silver again crossed the physiological level of Rs 68,000/ kg, but on August 6, silver price dropped below Rs 67,000/kg level for the first time in the recent past.
On August 6 in early trade, silver was trading at Rs 66,990/kg, down by Rs 582/kg from Rs 67,572/kg on August 5.
“Overall, the mixed flows came alongside a recovery in gold and silver prices in the market, particularly in the latter half of the month amid concerns of uncertain global growth outlook and a reaffirmed commitment by central banks to continue easy money policies despite elevated inflation,” Khare added.
“Gold and silver showed a negative movement since August 2. These two metals are giving some positive signals on daily chart, but time will tell where they are heading to,” said Matta.