Gold, silver slip ahead of US Fed policy meet

NEW DELHI: Precious metals gold and silver were trading lower in early trade on Tuesday as investors remained cautious ahead of a two-day US Federal Reserve meeting that is likely to provide hints on the central bank’s interest rate policy for rest of the year.

MCX Gold was down 0.07 per cent, or Rs 20, at Rs 28,973 per 10 gram around 10.25 am (IST), while MCX Silver was down 0.28 per cent, or Rs 109, at Rs 39,056 per 1 kg.

The US Fed is widely expected to increase interest rates during the policy meeting beginning Tuesday.

On the further movement of gold, Angel Commodities believes, MCX gold prices are expected to trade sideways on Tuesday.

However, Choice Broking in a research note said, “MCX Gold price has completed the revisit of channel breakout point on the daily chart. In addition, COMMEX Gold has been moving within a rising channel. Moreover, COMEX Gold price has sustained above 21 EMA on the daily frame. The momentum indicator MACD on the daily chart is in positive crossover whereas daily RSI moved above 50. Therefore, we expect the gold price to move up towards 29,280 levels.”

SPDR Gold Trust GLD, the world’s largest gold-backed exchange traded fund, said its latest holdings stood at 867 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 10,562.91 tonnes, remain unchanged from previous business day.