Gold prices were trading in red in morning trade on Tuesday on account of weak trend overseas and subdued demand from local jewellers.
MCX Gold was down 0.31 %, or Rs 94, at Rs 29,839 per 10 gram around 10.35 am (IST), whereas MCX Silver was down 0.33 %, or Rs 134, at Rs 41,030 per 1 kg.
Latest holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.3 % to 834.50 tonnes till September 8.
Holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 10,173.58 tonnes, remain unchanged from previous business day.
Benchmark equity indices were trading firm following global cues. The BSE Sensex was up 166 points, or 0.52 per cent, at 32,048 around 10.50 am (IST), while NSE Nifty index was up 45 points, or 0.45 per cent, at 10,050.
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Gold rose on Friday and was headed for its fifth straight weekly gain, boosted by a weaker dollar as the safe-haven asset continued to be in demand despite an increase in risk appetite post the Brexit vote.
The dollar pulled back against the yen and also fell against a basket of six currencies, even as Asian stocks rose on Friday as risk appetite continued to recover from last week’s Brexit shock.
Spot gold was up 0.6 per cent at $1,329.66 an ounce by 0418 GMT. The yellow metal registered its biggest monthly rise since February in June and was up 1 per cent for the week so far. US gold rose as high as 1 per cent to touch a session best of $1,334.10.
“It seems that investors are pushing both equities and gold higher simultaneously. One of these will eventually have to give, but for the moment, they each seem to be trading on their own dynamics,” The shock has actually passed but expectations of a rate hike by the US Federal Reserve for the short term has actually fallen quite significantly in combination with the apparent loosening of the monetary policy in Europe driving investor demand,”
Silver breached the $19 level to reach the highest since September 2014. The white metal climbed 2.5 per cent to 19.15, after reaching a session high of $19.25. Silver, which has gained more than 8 per cent this week, is on track for its best week since August 2013.
“Gold has been on an uptrend and silver tends to catch up,” said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central.
Platinum and palladium both rose to their highest since mid-May and were up 1.1 per cent and 0.5 per cent respectively.
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