Gold, silver slip; it's time to tread with caution

NEW DELHI: Gold and silver futures on the Multi Commodity Exchange were trading lower on Friday on account of subdued demand of precious metals by investors, retailers and industries.

The yellow metal was trading 0.26 per cent, or Rs 73, down at Rs 28469 per 10 gram, while the white metal was down 0.42 per cent, or Rs 177, at Rs 41970 per 1 kg.

Nirmal Bang Commodities in a research note said, “We expect gold prices to trade range bound for the day, amid lingering uncertainty over upcoming elections in Europe and Britain's exit from the European Union, even as the dollar hovered around two-week highs on positive US economic data.”

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its latest holdings stood at 832.32 tonnes, down 1.19 tonnes, from previous business day.

Holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10,291.97 tonnes, remain unchanged from previous business day.

Precious metals prices declined on Thursday as the dollar strengthened, but losses were capped by continuing economic uncertainty around Britain's departure from the European Union and approaching French elections.

NCDEX Gold Ahmedabad settled 0.16 per cent down at Rs 28,674 per 10 gram on Thursday against Rs 28720 per 10 gram in the previous trading session.

Abnish Kumar, Director & Research Head, Amrapali Aadya said, “With appreciating rupee bringing down the landing cost of domestic gold, it is expected spot market demand to be steady. On MCX trading range is placed between Rs 28,500-29,000 and downside seem protected around Rs 28400. One need to trade the yellow metal cautiously as it may adversely affected with improvement in US economic data and hawkish Fed speak.”