Gold, silver trade lower on profit booking

Gold and silver were trading in red in the morning trade on Wednesday on account of profit booking amid subdued demand for precious metals from jewellers, industries and retailers.

MCX Gold was down 0.31 per cent, or Rs 92, at 29,475 around 10.50 am (IST).

According to SMC Investment and Advisors, bullion counter may witness some profit booking at higher levels as outcome of UK elections on Thursday to give further direction to the prices. Meanwhile, movement of local currency rupee can also affect the domestic prices.

“Gold can move in range of Rs 29,400-29,800 per 10 gram while silver can move in range of Rs 40,200-41,000 per 1 kg in near term,” said SMC Investment and Advisors in a research note.

Latest holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, on Tuesday rose 0.49 per cent to 855.16 tonnes.

At the Multi Commodity Exchange, silver for delivery in July fell by Rs 137, or 0.34 per cent, to Rs 40,640 per kg, in a business turnover of 702 lots.

On the further movement of silver, Nirmal Bang Commodities said, “Silver prices are expected to witness profit taking if sustains below Rs 40,800 per 1 kg. Prices are expected to test Rs 40,300.”