Gold, silver trade higher in morning deals

Gold and silver were trading in green on lower equities and a weaker US dollar after European Central Bank President Mario Draghi hinted the ECB could trim its stimulus this year. Robust buying by investors, retailers and industries further support precious metals in morning deals.

MCX Gold was up 0.30 per cent, or Rs 87, at Rs 28,640 per 10 gram around 11 am (IST), while MCX Silver was up 0.98 per cent, or Rs 377, at Rs 38,732 per 1 kg.

On the further movement of gold, Nirmal Bang Commodities in a research note said, “Gold prices are expected to witness a sideways move from Rs 28,400-28,750. One can buy with a stop loss below Rs 28,380. However, silver prices are expected to trade positive. One can buy the white metal with a stop loss below Rs 38,100.”

According to SMC Investments and Advisors, gold can move in range of Rs 28,400-28,750 per 10 gram while silver can move in range of Rs 38,100-38,700 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 per cent to 851.02 tonnes on Friday.

Meanwhile, domestic equity markets were trading in red following weak global cues. The BSE Sensex was down 42 points, or 0.14 per cent, at 30,916 around 11 am (IST), while NSE Nifty index was down 3 points, or 0.03 per cent, at 9,508 at around the same time.