Silver may trade range of 49400-50500

MUMBAI-INDIA (Oct 23)  Bullion counter is expected continue yesterday gains but some profit booking at higher levels can be seen due to strong local currency rupee. Overall it can move in range of 29800-30300 while silver can move in range of 49400-50500. Gold traded near the highest level in more than three weeks on speculation that the Federal Reserve may delay stimulus cuts until next year after U.S. payrolls gained less than projected.

Gold is set for the first annual drop since 2000 as some investors lost faith in the metal as a store of value and on expectation the Fed will slow its $85 billion monthly bond purchases as the economy improves.

U.S. employers added 148,000 workers in September from a revised 193,000 gain in August, the Labor Department said yesterday. Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, expanded 0.8 percent to 878.32 metric tons yesterday, the first increase since Sept. 19.