Gold prices continued to trade higher on Wednesday following weaker greenback. MCX Gold futures were trading 0.05 per cent up at Rs 30,587 at around 10.30 am (IST).
On the other hand, silver futures on the MCX were trading in the red. MCX Silver futures were down 0.20 per cent, or Rs 80, at Rs 39,201 per 1 kg at around the same time.
SMC Investments and Advisors believes that bullion counter may remain on bullish path continuing Tuesday’s upside momentum on trade war fears and weaker dollar.
“On domestic bourses gold can recover towards Rs 30,650 while silver can recover towards Rs 39,500 on MCX,” SMC said.SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its latest holdings stood at 831.03 tonnes, remain unchanged from previous business day.
Holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 9,893.07 tonnes, remain unchanged from previous business day.
“We expect prices to trade range bound to higher for the day as US equities and the dollar weakened after President Donald Trump said he would push ahead with punitive tariffs on steel and aluminium imports, rekindling fears of a potential trade war,” said Nirmal Bang Commodities.
BSE Sensex and NSE Nifty extended their losses for the sixth straight on Wednesday on heavy selling in banking, metal and power stocks amid sustained selling by domestic institutional investors.
