Gold, silver slip in morning trade

Gold and silver were trading lower in morning trade on Tuesday following subdued demand of precious metals amid firm equity markets and the US dollar.

MCX Gold futures were down 0.60 per cent, or Rs 176, at around Rs 29,381 per 10 gram around 10.28 am (IST), while MCX Silver futures were down 0.45 per cent, or Rs 176, at Rs 39,281 per 1 kg at around the same time.

On the further movement of gold, Angel Commodities said, “We expect gold prices to trade lower on Tuesday on account of stronger dollar index while the possibility of the rate hike this year by the US Fed are push factors in the near term.”

Domestic financial markets were closed on October 2 on account of Gandhi Jayanti.

SMC Investments and Advisors said, “Bullion counter may continue to remain on weaker path as stronger greenback and fear of fed rate hike in December meeting may keep prices under selling pressure. Gold sales during Navratri and Dussehra halved this year as fear of the taxman's scrutiny of prosperous customers cast a shadow on the festive spirit, leaving jewellers sombre in the peak period of their business.”

Movement of rupee will give further direction to the prices. “Gold can move in range of Rs 29,500-29,800 per 10 gram while silver can move in range of Rs 39,000-39,600 in near term,” SMC said.