Gold and silver started this week on a positive note after loosing some sparkle last week. The market is not expected to make any grand moves as all eyes are on the US Federal Reserve meeting next week and the upcoming US presidential elections, said Insignia Consultants. Demand for silver is rising as prices have dipped to a near two-year low, with the white metal premiums at around Rs300/kilogram. “Importers and traders are having their best time in the past two years due to ever-rising premiums. The premiums on silver bars will fall only when prices rise over Rs19,000/kilogram,” Chintan Karnani from the consultancy firm said. Gold is still seen as the best buy for investment despite fluctuations in prices. Despite recent reports of the yellow metal expected to fall to $500-600/ounce over the next two months, Karnani believed it was not likely to go below the $690/ounce-mark till March 2009. Giving a technical view, Karnani said: “Failure of gold to break $820/ounce today will result in a fall to $760/ounce and then $740/ounce. Key weekly resistance is at $838.60/ounce.” As for silver, its failure to break the $10.23-10.33 range today will result in a fall to $9.30/ounce and then $8.80/ounce. Key weekly resistance is seen at $10.76/ounce.

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