Gold and silver prices traded lower in domestic and global markets on tuesday ,while investor interest in precious metal exchange -traded funds (ETFs)remained strong ,supported by Global uncertaintalty and divesification demand ,market participants said.
In the domestic market ,Silver prices came under fresh selling pressure after gaind in the previous session .On the multi commudity Exchange (MCX) Silver prices fell by more than RS 5000 to trade near RS 257000 per kg . In the global makret ,silver prices declined by around 2 per cent .
Gold prices also weakened .On MCX gold prices slipped by about RS 859 to trade near rs 157000 per 10 grams .In the international market ,gold prices were down by around $30 per Ounce.
Crude oil,rupee and equity market
Crude oil prices traded in a narrow range ,Brent crude was marginally lower near $69 per barrel,while west texas intermediate crude hovered around $64 per barrel .The rupee strengtheened slightky against the us doller,rising about 5 paise to trade near 90.70 per dollar .
Equity markets extended gains for a third consecutive session .The nifty was trading near the 25980 level,while the sensex was up around 380 points ,supported by IT,metal and Pharma stocks .
Strong inflows into gold and silver ETFs
Despite the decline in gold and silver orices,flows into precious metal ETFs remained strong january mutual fund data showed gold ETFs recorded net inflows of over rs 24000 crore,sharply higher than rs 11647 crore in December. Silver ETFs saw net inflows of 9463 crore during the month .Assets under management of silver ETFs stood at around rs 1.25 lakh crore.
Market participants said the net inflow into gold ETFs in january was almost equal to total inflows across all equity mutual fund categories combined for the month ,highlighting rising investor preference for gold through ETF routes.
central bank buying ,volatility driving gold demand
Optima money managing Director Pankaj Mathpsl said investor interest im gold ETFs has been driven by both globel and domestic factors ."One of the key reasons for rising interest in gold is the central banks across the world are increasing thier gold holdings " Mathpal said "At the same time ,volatility in equity makrets haas made gold an attractive option for investors ' he added.
Mathpal said gold ETFs have deliverded strong returns across time horizons ."Over the last one year ,gold ETFs have given returns of around 80 per cent .long-term returnd have also been strong eith three-year CAGR around 37 percent ,five -year CAGR near 25 per cent and 10 year CAGR close to 17 percent ,he said .
