Gold, silver trade in green; traders await cues from Yellen testimony

NEW DELHI: Gold and silver were trading higher in early trade on Wednesday on account of weaker dollar and subdued buying in precious metals by jewellers, industries and retailers.

Meanwhile, market participants are also awaiting testimony from US Fed Chairwoman Janet Yellen.

MCX Gold was up 0.31 per cent at Rs 27,920 per 10 gram around 10.30 am (IST), while MCX Silver was up 0.75 per cent at Rs 37,045 per 1 kg at around the same time.

SMC Investments and Advisors in a research note said, “Bullion counter can trade sideways with mixed bias on Wednesday as today Fed chair Yellen testimony can give further direction to the prices. Meanwhile safe-haven demand and movement of greenback will give further direction to the prices. Gold can move in range of Rs 27,700-28,000 while silver can move in range of Rs 36,300-37,000 in near term.”

Movement of local currency rupee can also affect the domestic prices.

Latest holdings at SPDR Gold Trust , the world's largest gold-backed exchange-traded fund fell 0.35 per cent to 832.39 tonnes on Monday from 835.35 tonnes on Friday.

Meanwhile, domestic equity markets were trading in green following mixed global cues. The BSE Sensex was up 55 points, or 0.17 per cent, at 31,802, while NSE Nifty index was up 26 points, or 0.27 per cent, at 9,812.