Gold, silver trade lower ahead of US Fed outcome

NEW DELHI: Gold and silver futures on the Multi Commodity Exchange (MCX) were trading lower in early trade on Wednesday ahead of the US Federal Reserve interest rate decision later in the day.

The yellow metal was trading 0.45 per cent, or Rs 125, down at 27,951 per 10 gram in early trade around 10.15 am (IST), while the white metal was trading 0.36 per cent, or Rs 143 per cent, up at Rs 39,940 per 1 kg.

Nirmal Bang Commodities in a research note said, “We expect prices to trade range bound for the day, ahead of the outcome of a two-day Federal Reserve meeting, with the US central bank widely expected to raise interest rates.”



Gold exchange-traded funds ( ETFs) saw a net outflow of Rs 46 crore last month, taking the total to Rs 695 crore in the ongoing financial year till February.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its latest holdings stood at 832.03 tonnes, up 6.81 tonnes, from previous business day. Holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,268.39 tonnes, remain unchanged from previous business day.


Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments said, “Gold has been under pressure as the metal is adjusting against a probable rate hike by US Fed. The yellow metal is expected to trade lower ahead of the US Fed meet outcome.”