Gold, silver inches down on global cues

Precious metals gold and silver were trading in red in morning trade on Thursday following global cues.

MCX Gold was trading 0.24 per cent, or Rs 68, down at Rs 28,182 per 10 gram around 10.40 am (IST), while MCX Silver was down 0.37 per cent, or Rs 138, at Rs 37,619 per 1 kg at around the same time.

Angel Commodities in a research note said, “We expect gold prices to trade sideways on Thursday as weaker dollar index and stronger physical demand are push factors. While rising risk appetite post bank of Japan statement will restrict upside.”

Japan's central bank on Thursday kept its lavish monetary stimulus intact while downgrading its outlook for inflation.

The Bank of Japan's policy meeting ended Thursday with no change to its injections of trillions of yen into the economy each year through government bond purchases.

Markets participants are also looking to a meeting of the European Central Bank later in the day for clues on the outlook for its stimulus programme.

Latest holdings at the SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund declined 0.65 per cent to 816.13 tonnes on Wednesday from 821.45 tonnes on Tuesday.

Nirmal Bang Commodities said, “Gold prices are expected to correct on Thursday. One can sell with a stop loss above Rs 28,400. Prices are expected to test 28100.”