Gold Rate Today: Gold, silver down ahead of US Fed policy outcome

Gold and silver were trading lower in morning trade on Wednesday on account of muted demand in precious metals from jewelllers, industries and retailers. MCX Gold futures were down 0.04 per cent at Rs 31,144 per 10 gram at around 10.30 am (IST), whereas MCX Silver futures were down 0.26 per cent at Rs 40,584 at around the same time.

Sentiment in gold remained downbeat on the back of stronger dollar amid historic US-North Korea summit in Singapore and on likely interest rate hike by the US Federal Reserve, thereby eroding demand for the precious metal as a safe haven.

SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its latest holdings stood at 828.76 tonnes, remain unchanged from previous business day.

Holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, stood at 9,868.83 tonnes down 61.48 tonnes, from previous business day.

Gold imports into India, the world’s second-biggest buyer of the metal, could drop by 18 per cent in 2018 from a year ago as rising prices and a falling rupee have dented demand from retail jewellery buyers, according to a Reuters poll. This year’s imports are likely to be 725 tonnes, according to the median of responses from 12 industry participants in the poll. The range of responses was between 650 tonnes to 800 tonnes.

Nirmal Bang Commodities said, “We expect prices to trade range bound for the day, ahead of the US Federal Reserve’s policy decision which could give cues on future rate hikes.”