Gold, silver trade on a cautious note
NEW DELHI: Triggered by a stronger dollar, gold and silver prices on the Multi Commodity Exchange (MCX) were trading on a cautious note in early trade on Monday. However, geopolitical tensions capped the downside of the precious metals.
Gold was trading 0.02 per cent down at Rs 28,678 per 10 gram around 10.20 am (IST), while silver was down 0.03 per cent at Rs 41,365 per 1 kg.
For Monday’s trading session, Nirmal Bang Commodities in a research note said, “We expect gold prices to trade range bound for the day weighed down by a stronger dollar. Silver prices are expected to trade sideways from Rs 40,800-41,800.”
SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its latest holdings stood at 836.49 tonnes, down 0.28 tonnes, from previous business day. Holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,208.21 tonnes, remain unchanged from previous business day.
Gold hit a five-month high on Friday after the US jobs data dampened expectations that the US Federal Reserve will hike interest rates, but the metal gave up most gains as the dollar rose and safe haven demand retreated.
According to IIFL, Gold prices discernibly benefited from American missile strike on Syrian air base and subdued US employment numbers. In this regard, US economy created meagre 98,000 jobs in March, however, the unemployment rate inched lower to a 10 year low of 4.7 per cent. Although gold prices have now pared some part of its recent gains, we infer that the short-term outlook for the yellow metal remains constructive given the multitude of simmering geopolitical issues.
Gold was trading 0.02 per cent down at Rs 28,678 per 10 gram around 10.20 am (IST), while silver was down 0.03 per cent at Rs 41,365 per 1 kg.
For Monday’s trading session, Nirmal Bang Commodities in a research note said, “We expect gold prices to trade range bound for the day weighed down by a stronger dollar. Silver prices are expected to trade sideways from Rs 40,800-41,800.”
SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its latest holdings stood at 836.49 tonnes, down 0.28 tonnes, from previous business day. Holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,208.21 tonnes, remain unchanged from previous business day.
Gold hit a five-month high on Friday after the US jobs data dampened expectations that the US Federal Reserve will hike interest rates, but the metal gave up most gains as the dollar rose and safe haven demand retreated.
According to IIFL, Gold prices discernibly benefited from American missile strike on Syrian air base and subdued US employment numbers. In this regard, US economy created meagre 98,000 jobs in March, however, the unemployment rate inched lower to a 10 year low of 4.7 per cent. Although gold prices have now pared some part of its recent gains, we infer that the short-term outlook for the yellow metal remains constructive given the multitude of simmering geopolitical issues.
