Gold trades flat in lacklustre trade; watch out for key support at Rs 27,650-27,450

NEW DELHI: Gold and silver prices traded marginally in the red in morning trade on Tuesday amid subdued demand for the precious metals from jewellers, retailers and industries.

The yellow metal traded 0.11 per cent, or Rs 31, down at Rs 28,020 per 10 gm on the Multi Commodity Exchange at around 10.50 am (IST), while the white metal traded 0.24 per cent, or Rs 96, down at Rs 40,592 per 1 kg.

Rohit Gadia, Founder and Chief Executive Officer, CapitalVia Global Research said, “The Rs 27,650 and Rs 27,450 levels will act as major supports for gold in Tuesday’s session, whereas Rs 28,000 and Rs 28,300 levels will act as major resistance. If it sustains above the Rs 28,000 level, gold can test the Rs 28,300 level on upside.”

In global markets, spot gold prices rose by 0.70 per cent to $1,181.2 per ounce on Monday as global markets reassessed their views on the US economy before the January 20 takeover by President-elect Donald Trump.

However, the upside was limited as SPDR Gold Trust holdings fell 1.06 per cent to 805.0 tonnes on Monday.

According to Nirmal Bang Commodities, hedge funds and money managers have cut bullish positions in COMEX gold contracts for the eighth straight week during the week to January 3, taking their holdings to the lowest level in 11 months.