Gold future rose as the trading session kicked off, but it couldn’t sustain its highs as the later part of the trading session saw some profit taking coming in the market. Silver Futures however manage to rally up with Gold but couldnot maintain as Gold and Base Metal Complex traded lower.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,077.63 tonnes as of Sept 9, unchanged since Sep 4th.

The holdings of the trust, which issues securities backed by physical stocks of gold, have declined in recent months due to fading worries about inflation, which has sapped investors' appetite for bullion as a hedge.

Barrick Gold, the world's top gold miner, will issue $3 billion in stock to eliminate all of its fixed-price gold hedges and a portion of its floating hedges.

Echoing recovery concerns, top Federal Reserve policymakers said on Wednesday that U. S. labour markets could take years to recover from the setbacks of the current recession which have pushed the jobless rate to a 26-year high.

Silver ended lower in yesterday’s trading session, following the weakness of other base metals such as copper. Silver futures recently have outperformed gold, helped by better economic sentiment. Usually less-liquid silver has the characteristics of both precious and industrial metals.

Gold may see some more profit taking in early trading session as it couldn’t sustain its high, but we still believe it has the potential & we shall recommend buying gold at dips. Silver too may show some profit taking, and outlook for Gold & Silver is to buy at dips.