Blog

Gold, silver gain amid North Korea concerns

Gold was trading higher in early trade on Friday as escalating tensions in the Korean Peninsula prompted investors to seek out the safe-haven asset. 

MCX Gold was trading 0.56 per cent up at Rs 29,729 around 10.30 am (IST), while MCX Silver was trading 0.54 per cent up at Rs 40,050 at around the same time.
Angel Commodities said, “We expect gold prices to trade sideways on Friday as North Korea is likely to retaliate to new sanctions with a Hydrogen bomb in the Pacific, thereby boosting safe-haven demand. However, the sharp upside will be restricted as latest hawkish statements from the US Fed unwinding its balance sheet will exert pressure.”
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.73 percent to 852.24 tonnes on Thursday. 

SMC Investments and Advisors said, “Bullion counter may trade on sideways as a movement of dollar index and ECB Draghi speech can give further direction to the prices. Meanwhile, movement of local currency rupee can give further direction to the prices.” 

“Gold can move in a range of Rs 29,400-29,750 in near term,” the brokerage house said. Meanwhile, domestic equity markets were trading in the red following global and rupee plunged below 65-mark and hit its lowest level in five and a half months.
The BSE Sensex was trading 260 points, or 0.80 percent, down at 32,110 around 10.40 am (IST), while NSE Nifty index was down 99 points, or 0.97 percent, at 10,023 at around the same time.