Gold, silver trade lower in morning deals; should you buy?

Gold and silver prices were trading lower in early trade on Friday on account of subdued demand for precious metals from jewellers, retailers and industries.

MCX Gold was trading 0.32 per cent down at Rs 28,612 around 11.15 am (IST), while MCX Silver was down 0.08 per cent at Rs 38,856 at around the same time.

Nirmal Bang Commodities said, “We expect prices to trade range bound for the day. Gold prices are expected to trade sideways from Rs 28,900-28,500. One can buy on dips with a stop loss below Rs 28,450.

SPDR Gold Trust GLD, the world's largest gold-backed exchange traded fund, said its latest holdings stood at 850.71 tonnes, down 1.18 tonnes, from previous business day.

Latest holdings of the largest silver backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,693.85 tonnes, up 44.15 tonnes, from previous business day.

On the further movement of bullion counters, SMC Investments and Advisors in a research note said, “Precious metals may remain on volatile path as movement of dollar index and safe haven demand to give further direction to the prices. Meanwhile weaker local currency rupee is supporting the prices. Gold can move in range of Rs 28,500-28,900 while silver can move in range of 38,600-39,000 in near term.”