Gold price on August 10, 2021: Yellow metal down by Rs 204/10 gm; check rates in Delhi, Mumbai and Chennai

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After the great fall on August 9, gold slipped again on August 10 in early trade. The yellow metal nosedived due to pressures of global selloff. The cost of 24 carat gold was down by Rs 204 to Rs 46,352/10 gm from Rs 46,556/10 gm a day earlier, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The price of 22- carat gold also fell by Rs 187 to Rs 42,458/10 gm from previous close of Rs 42,645/10 gm. Silver also fell by Rs 700/kg amid sluggish demand across the trading community.

“Gold and silver consecutively showed a huge downward movement on Monday and on Tuesday, it held the momentum and went slightly down. So, traders are advised to take a small risk and invest in gold-silver for short term period of 2-3 months because both are trading at oversold zones,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Ltd.

“Gold and silver prices were sharply lower in midday dealings on Monday in the US, with gold overnight careening to a more-than-four-month low of $1,676.40 and silver slumping to a more-than-eight-month low of $22.295,” added Khare.

Silver down too

After crossing the Rs 68,000 level on July 27 and August 3, silver price has suffered the sharpest-ever drop since December 2020. The slump continued on August 10.

Silver spot price dropped almost Rs 700/kg. In early trade on Tuesday silver dropped by Rs 695/kg and reached a record low of Rs 63,330/kg from earlier close of Rs 64,024/kg on yesterday.

Experts feel silver price might dip to as low as Rs 60,000/kg level soon.

 “The metals are still suffering from the reverberations of last Friday‘s surprisingly strong US jobs report that pushed the US stock indexes to or near their record highs, rallied the US dollar index, pushed the US Treasury yields up (prices down)—all bearish elements for the metals. The jobs data on Friday immediately set off heightened speculation the Federal Reserve would act sooner to reel in its easy monetary policies. That really spooked the metals markets bulls. Apparently, the metal traders are presently choosing not to focus on the bullish inflationary implications of a rebound in the US economy that is already seeing consumer and producer prices on the rise,” added Khare .