Gold and silver on the Multi Commodity Exchange (MCX) were trading lower in early trade on Wednesday following strengthening dollar on hawkish comments overnight from the US Federal Reserve officials.
Some Fed officials on Tuesday boosted expectations for a March US interest rate increase.
The yellow metal was trading 0.62 per cent, or Rs 184, down at Rs 29,382 per 10 gram in early trade, while the white metal was down 0.41 per cent, or Rs 177, at Rs 43,070 per 1 kg.
Nirmal Bang Commodities said, “Gold prices are expected to witness profit booking on Wednesday.”
Abnish Kumar, Director and Research Head, Amrapali Aadya said, “Stronger dollar can pull prices of gold in domestic market to a level of Rs 29,300.”
Ahmedabad gold spot prices in on the NCDEX closed at Rs 29,566 per 10 gram, while silver settled at Rs 43,200 per 1 kg on Tuesday.
SPDR Gold Trust GLD, a gold-backed exchange-traded fund, said its latest holdings stood at 841.17 tonnes, unchanged from previous business day. However, holdings of silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 10428.42 tonnes, unchanged from previous business day.