Gold, silver trade higher in morning trade; should you buy?

NEW DELHI: Precious metals gold and silver were trading higher in early trade on Thursday following weakness in the dollar after minutes of the US Federal Reserve’s last policy meeting downplayed the chance of more aggressive interest rate hikes.

MCX Gold was trading 0.11 per cent or Rs 32 up at Rs 28,745 around 10.40 am (IST), while MCX Silver was up 0.27 per cent or Rs 107 at Rs 39,939 per kg.

Nirmal Bang Commodities said, “We expect gold prices to trade rangebound for the day, with the dollar slipping after minutes of the US Federal Reserve’s last policy meeting dampened hopes for an aggressive string of interest rate hikes.”

SMC Investments and Advisors said, “Bullion counter may remain on higher side as weak dollar index and dovish FOMC minutes can give support to the prices.”

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

Holdings of the largest silver-backed exchange-traded-fund, New York's iShares Silver Trust SLV, stood at 10,634.99 down 58.86 tonnes, from the previous business day.

Industrial metals were trading higher in international bourses on Thursday despite concerns that slowing economic growth in China could hit demand from the world’s top metals consumer.