Gold and silver futures on the Multi Commodity Exchange (MCX) were in red in early trade on Monday due to weak demand of precious metals from jewelers, industries and investors.
The yellow metal was down 0.10 per cent, or Rs 29, at 29594 per 10 gram around 10.15 am (IST). However, silver was trading 0.05 per cent, or Rs 23, down at Rs 43,330 per 1 kg around the same time.
In the international markets, gold reached to its highest level in 3-1/2 months on Friday as the dollar fell to a one-week low after the new US Treasury chief poured cold water on the “Triflation trade” that had boosted the greenback this year.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its latest holdings stood at 841.17 tonnes, remain unchanged from previous business day. However, holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 10428.42 tonnes, remain unchanged from previous business day.
Gold, silver trade lower in early trade
For Monday’s movements of precious metals, Nirmal Bang Commodities said, “We expect prices to trade range bound for the day as investors await more clarity on President Donald Trump’s economic policy.”
However, Abnish Kumar, Director and Research Head, Amrapali Aadya said, “This week, we may see international gold prices reaching $1260 per ounce and above as Fed acknowledgment of uncertainty over economic policy under Trump may trigger lot of safe heaven ETF buying. Though timing of the hike will be fairly data-driven but policy uncertainty could undermine the data. In such a scenario a weakening dollar may trigger a rally in yellow metals. Gold prices in the domestic bourses can move to a level of Rs 29,600 and above.”