Gold prices were steady on Wednesday led by safe-haven demand amid the Middle East conflict partially offseting pressure from higher US Treasury yields.
Spot gold price was at $2,383.29 per ounce, while US gold futures fell 0.3% to $2,399.60 per ounce. Spot silver rose 0.3% to $28.17 per ounce.
MCX gold rate ended marginally lower on Tuesday amid a rangebound trade. Gold price fell by ₹30, or 0.04% to ₹72,999 per 10 grams on MCX. During the day, gold rate hit a high of ₹73,315 level.
Silver price closed down by ₹24, or 0.03%, at ₹83,480 per kg on MCX.
The Indian stock market and commodity market are closed today on account of Ram Navami.
Read here: Stock market holiday: BSE, NSE to remain closed today for Ram Navami
Gold rate has risen by about 15% so far this year, with gains partially driven by safe-haven demand amid escalating geopolitical tensions in the Middle East and Ukraine.
Benchmark US 10-year Treasury yields hovered near the five-month highs hit in the previous session. The yellow metal prices withstood a surge in Treasury yields as well as a jump in the dollar after US Federal Reserve Chairman Jerome Powell’s comments lowered expectations for Fed rate cuts this year.
Powell said that it’s appropriate to give the Fed’s restrictive policy further time to work, and pointed to the lack of additional progress made on inflation in recent months following several strong US economic prints, Bloomberg News reported.
Higher interest rates and a stronger dollar reduce the appeal of holding non-yielding gold, yet it remains in a weeks-long uptrend.
However, robust buying by central banks, increased demand from Chinese consumers and heightened geopolitical tensions continue to support gold prices.
(With inputs from Agencies)
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Published: 17 Apr 2024, 07:31 AM IST