Gold, silver down in early trade

Gold and silver were trading in red in early trade on Wednesday on account of tepid demand of precious metals from jewellers, industries and retailers and strong greenback.

MCX Gold was down 0.23 per cent, or Rs 66, at Rs 28,675 per 10 gram at 10.20 am (IST), while MCX Silver was down 0.72 per cent, or Rs 290, at Rs 39,992 per 1 kg.

Nirmal Bang Commodities said, “Nirmal Bang Commodities in a research note said, “Gold prices are expected to correct on Wednesday. Traders can sell with a stop loss above Rs 29,120. Prices are expected to test Rs 28,700. Silver prices are expected to test Rs 39,700-500. Traders can sell the white metal with a stop loss above Rs 40,400.”

SPDR Gold Trust GLD, the world's largest gold-backed exchange traded fund, said its latest holdings stood at 847.45 tonnes, remain unchanged from previous business day.

Latest holdings of the largest silver backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,605.56 tonnes, remain unchanged from previous business day.

On the near-term movement of the yellow metal, SMC Investments and Advisors said, “Movement of rupee can affect domestic prices. Gold can move in range of Rs 28,750-28,950 per 10 gram while silver can move in range of Rs 39,700-40,200 in near term.”