NEW DELHI: Gold and silver were flat on Tuesday as traders were in wait and watch mode as the economy struggled to come back on its feet while Moody’s downgraded India’s rating.

Downgrading India's rating by a notch to 'Baa3' from 'Baa2' assigned in November 2018, Moody's estimated India GDP shrinking by 4 per cent -- first full fiscal contraction in more than four decades, as the country faces a prolonged period of slower growth.

Gold futures were up 0.08 per cent or Rs 37 at Rs 47,175 per 10 grams. Silver futures dropped 0.14 per cent or Rs 73 to Rs 50,538 per kg.



After a long gap, spot gold markets in the national capital re-opened on Monday but the benchmark rate for the yellow metal is yet to be decided, according to HDFC Securities. However, price fixing rates are not coming.

Globally, gold prices inched lower on signs of economic recovery as more countries ease lockdown curbs, while protests in the United States, Sino-US tensions and a weaker dollar limited losses.

Spot gold was down 0.1 per cent at $1,738.12 per ounce, as of 0110 GMT. US gold futures rose 0.2 per cent to $1,753.70.

In a sign that the worst of the economic downturn from the coronavirus pandemic might be over, U.S. manufacturing activity ticked up slightly from a 11-year low.

Reflecting investor sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings, rose 0.5 per cent to 1,128.40 tonnes on Monday.

Palladium rose 0.2 per cent to $1,964.87 per ounce, and platinum was up 0.3 per cent to $850.19, while silver fell 0.5 per cent to $18.17.