Gold Rate Today: Gold, silver slip in morning trade

Gold and silver were trading lower in morning trade on Tuesday on account of subdued demand for precious metals from jewelers, industries and retailers.

MCX Gold futures were down 0.35 per cent, or Rs 109, at Rs 31,395 per 10 gram, whereas MCX Silver futures were down 0.61 per cent, or Rs 248, at Rs 40,100 at around 10.05 am (IST).

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.17 per cent to 856.17 tonnes on Monday.

“We expect gold prices to trade lower on Tuesday as positive comments by Cleveland Fed President Loretta Mester in support of gradual rate hikes will exert pressure,” Angel Broking said in a note.

Meanwhile, benchmark equity index Sensex soared over 400 points after the BJP took the lead in Karnataka election results. The 30-share index was up 1.22 per cent at 35,988.97.

According to SMC Global Securities, bullion counter may see profit booking at higher levels amid stronger greenback and hawkish comments by some fed members. Investors will eye the outcome of US retail sales data later today. On domestic bourses weakness in local currency has capped the downside to larger extent. Gold can take support near Rs 31,350 and can face resistance near Rs 31,600 in MCX. Meanwhile silver can take support near Rs 40,100 and can face resistance near Rs 40,600.