Gold and silver futures on the Multi Commodity Exchange (MCX) were trading lower in early trade on Wednesday led by subdued demand of precious metals from jewellers, investors and industries.
Gold was trading 0.60 per cent, or Rs 173, down at Rs 28765 per 10 gram around 10.25 am (IST), while silver was down 0.87 per cent, or Rs 368, at Rs 42,020 per 1 kg.
Robust US economic data that boosted expectations for further interest rate hikes this year also affected the movement of yellow metal.
The US consumer confidence index hit 125.6 in March, surpassing expectations for a reading of 114 and much higher than 116.1 in February. The March level marked the highest since December 2000.
On the further movement of gold, Angel Broking in a note said, “We see some profit taking in the recent trading sessions as investment demand has gained in the past few days with inflows in the SPDR gold trust and uncertain global environment adding further push.”
Nirmal Bang Commodities said, “Gold prices are expected to correct till Rs 28,750-28,700. Traders can sell with a stop loss above Rs 29,070. Silver prices are also expected to fall on Wednesday.