Gold, silver rise in morning trade

Gold and silver were trading higher in morning trade on Wednesday on account of short coverings and some festive buying. MCX Gold futures were trading 0.23 per cent up at Rs 29,667 per 10 gram around 10.30 am (IST), while MCX Silver futures were up 0.33 per cent at Rs 39,900 per 1 kg.

According to SMC Investments and Advisors, bullion counter may witness some short covering at lower levels as movement of greenback can give further direction to the prices.

“Gold can move in range of Rs 29,500-29,850 while silver can move in range of Rs 39,000-40,200 in near term,” the brokerage house said.

Multi Commodity Exchange (MCX) on Tuesday also launched the country's first gold options contract.

Gold Option contract, with Gold (1 Kg) futures as underlying, expiring on Nov 28, 2017, and Jan 29, 2018, were available for trading from Tuesday.

While commenting on gold options, Aurobinda Prasad Gayan, Vice President, Kotak Commodity Services said, “With option contracts launching on gold for the first time in India the participation from investor to hedgers would be much beneficial. The Indian bullion participants are now blessed with another avenue to hedge their business risk. We are with option and futures contract being available on gold the business would grow manifold. Many jewellers would now use the platform for better risk management."