Gold surges on safe-haven buying; may test Rs 29,000/10 gram

NEW DELHI: Demand for save haven assets increased in Friday’s trade after the US military launched cruise missile strikes against a Syrian air base controlled by President Bashar al-Assad's forces.

As a result, precious metal gold on the Multi Commodity Exchange (MCX) was trading 0.50 per cent, or Rs 144, up at Rs 28,865 per 10 gram around 10.30 am (IST). White metal silver was also up by 0.56 per cent, or Rs 237, at Rs 42,330 per 1 kg.

SPDR Gold Trust GLD, the world's largest gold-backed exchange traded fund, said its latest holdings stood at 836.77 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 10208.21 down 29.45 tonnes, from previous business day.

On the further movement of gold on Friday, Nirmal Bang Commodities in a research note said, “We expect prices to trade higher for the day on account of safe-haven buying. Gold prices are expected to test Rs 29,000-29,050. One can buy with a stop loss below 28,700 per 10 gram.”

According to SMC Investment and Advisors, bullion counter may open on higher side amid geopolitical tensions. Gold (June) can move in range of Rs 28600-29000 while silver (May) can move in range of 41,800-42,600 in near term.