Gold and silver trades flat with negative bias on the Multi Commodity Exchange (MCX) in early trade on Tuesday as traders awaited the outcome of the two-day meeting of the US Federal Open Market Committee, which is scheduled to start later in the day. The US central bank is widely expected to raise interest rates.
The yellow metal was trading 0.05 per cent, or Rs 13, down at Rs 28,238 per 10 gm at around 10.25 am, while the white metal traded 0.04 per cent, or Rs 18, down at Rs 40, 400 per 1 kg.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its latest holdings stood at 832.03 tonnes, up 6.81 tonnes, from the previous business day. Holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 10,268.39 tonnes, unchanged from the previous business day.
“We expect gold prices to trade lower in anticipation of the rate hike in the US Federal Reserve meeting scheduled for March 14 and 15. Besides, investors focus will remain on the Dutch elections which will provide further clues on the prices trajectory of precious metals,” Angel Commodities said in a note.