Gold and silver were trading over 0.50 per cent higher in early trade on Thursday on the Multi Commodity Exchange (MCX) amid buying of the precious metals by jewellers, retailers and industries following a decline in the US dollar against a basket of global currencies.
The yellow metal was trading 0.51 per cent, or Rs 140, higher at Rs 27,440 per 10 gm at around 10.30 am (IST) on Thursday, while the white metal was up 0.88 per cent, or by Rs 345, at Rs 39,765 per 1 kg.
The dollar index, which measures the movement of the greenback against a basket of currencies, eased 0.30 per cent o 103.03.
Nirmal Bang Commodities in a research note said, “Gold prices are expected to move higher on Thursday. One can buy gold for a target at Rs 27,550-600 per 10 gm with a stop loss below Rs 27,200. Silver will also witness a pullback till Rs 40,000-40,200. One can buy the white metal with a stop loss below Rs 39,100.”
Angel Commodities Broking said gold is likely to trade sideways on Thursday amid bargain hunting at lower levels while volumes will remain thin on account of yearend celebrations and Christmas holidays across the globe.
Assets in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.14 per cent to 823.36 tonnes on Tuesday. Holdings are down about 13 per cent since the US presidential elections.
NCDEX data showed spot prices of gold Ahmedabad stood at Rs 27,466 per 10 gm on Wednesday, while silver Ahmedabad traded at Rs 39,155 per kg.