Gold and silver were trading in red in morning trade on Tuesday with investors looking to a speech by the US Federal Reserve Chair Janet Yellen later in the day for clues on the outlook for US monetary policy.
Meanwhile, the subdued demand for precious metals from jewelers, industries, and retailers further dented sentiment.
MCX Gold was down 0.06 per cent, or Rs 17, at Rs 28493 per 10 gram around 11.15 am (IST), while MCX Silver was down 0.19 per cent, or Rs 74, at Rs 38230 per 1 kg at around the same time.
On Tuesday’s movement of gold, Angel Commodities in a research note said, “On the MCX, gold prices are expected to trade lower today, following weakness in the previous trading session as international markets remain flat at $1244 per ounce.”
SMC Investments and Advisors said, “Today Gold Price in India can move in the range of Rs 28,350-28,650 while silver can move in the range of Rs 38,000-38,600 in near term.”
Investors’ lack of interest in gold can be seen at SPDR Gold Trust, the world’s largest gold-backed exchange traded fund, where holdings declined by 0.35 percent to 851.02 tons on Friday.
The BSE Sensex and NSE Nifty were down 0.29 per cent and 0.44 per cent at 31040 and 9,532 around 11.30 am (IST).