Gold trades lower in morning trade; Rs 27,700/ 27,400 key levels to watch today

NEW DELHI: Gold futures were trading flat with marginal losses on the Multi Commodity Exchange ( MCX) in early trade on Wednesday, as expectations of an interest rate hike by the US Federal Reserve continued to weigh on the precious metal.

The yellow metal was trading lower by Rs 2 at Rs 27,824 per 10 gm on the exchange. Silver futures on the MCX were trading 0.14 per cent down at Rs 40,965 per 1 kg.

Rohit Gadia, founder and CEO, CapitalVia Global Research, said: “A strong US dollar coupled with expectations of an interest rate hike in the US put pressure on the precious metal. For Wednesday, Rs 27,700 and Rs 27,400 will act as the major supports for the yellow metal whereas Rs 28,250 and Rs 28,500 per 1 kg will act as major resistance levels for it.”

SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its latest holdings stood at 889.33 tonnes, up 4.47 tonnes from the previous business day.

Globally, gold inched up on Tuesday as bargain hunters moved in after prices of the precious metal touched their lowest in 10 months.

Nirmal Bang Commodities in a research note said, “Gold prices are likely to trade higher for days as there are concerns in the world economy despite a Fed rate hike. Gold can be used as a hedging tool.”

In Ahmedabad spot market, gold and silver prices stood at Rs 28,244 per 10 gm and Rs 41,205 per 1 kg, respectively, on Tuesday.