Gold trades higher in morning trade; should you buy?

NEW DELHI: Gold and silver were trading higher in early trade on Tuesday on account of demand of precious metals by jewellers, industries and retailers.

MCX Gold was up 0.27 per cent or Rs 78 at Rs 29,295 per 10 gram around 10.30 am (IST).

Nirmal Bang Commodities said, “We expect gold prices to trade higher on Tuesday, on weaker Asian stocks and amid tapered expectations for aggressive US rate hikes this year.”

SPDR Gold Trust GLD, the world’s largest gold-backed exchange traded fund, said its latest holdings remained unchanged at 851 tonnes, from the previous business day.

Angel Commodities believes, gold prices will continue to move higher unless the political uncertainty from the US and the UK with regards to elections fades. “Weak dollar will also act as a positive factor for the yellow metal,” the brokerage house said.

MCX Silver was up 0.15 per cent, or Rs 62, at Rs 40,515 per 1 kg.

Holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 10,562.91 tonnes, down 38.26 tonnes, from the previous business day.