Gold Prices Today: Yellow Metal Dips; Silver, Palladium Rates Edge Higher
Gold Prices Today: Yellow Metal Dips; Silver, Palladium Rates Edge Higher
Gold dipped Rs 317 to Rs 46,382 per 10 grams in the national capital on Wednesday

Gold dipped Rs 317 to Rs 46,382 per 10 grams in the national capital on Wednesday, in line with a decline in the yellow metal’s prices overseas, according to HDFC Securities.

In the previous trade, the precious metal had closed at Rs 46,699 per 10 grams. In contrast, silver jumped Rs 2,328 to Rs 70,270 per kilogram from Rs 67,942 in the previous trade.

Spot gold was flat at $1,778.60 per ounce by 0930 GMT, after falling about 0.8% in the previous session. US gold futures were steady at $1,777. Silver was flat at USD 26.42 per ounce.

“Gold prices traded under pressure over stronger dollar and rise in US bond yields,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.

“The dollar index bounced back last week and has generally risen this week. That’s kind of providing some downward pressure on gold prices,” said Fawad Razaqzada, analyst with ThinkMarkets.

“Treasury Secretary Janet Yellen clearly said that rates need to go up higher at some point of time. The key question is how fast they will rise as the Federal Reserve has remained quite dovish.”

The dollar index was hovering close to a near two-week peak against its rivals.

Yellen on Tuesday said she saw no inflation problem brewing, downplaying earlier comments that rate increases may be needed to stop the economy overheating as U.S. President Joe Biden’s spending plans boost growth.

Higher interest rates dull gold’s appeal as it increases the opportunity cost of holding non-yielding bullion.

Meanwhile, investors await US services data on Wednesday and April payrolls on Friday for cues on the health of the US economy.

Elsewhere, palladium rose 0.4% to $2,996.21 per ounce, after hitting an all-time high of $3,017.18 in the previous session, driven by concerns of a shortage of the metal.

Palladium held near record highs hit in the previous session amid supply worries. The metal used mainly in emission-reducing auto catalysts for vehicles, has risen more than 22% so far this year.

Silver was down 0.5% at $26.40, while platinum fell 1.1% to $1,223. Both the metals hit their highest level in more than two months on Tuesday.

“A rebound in industrial activity will bode well for the demand for silver,” said Nitesh Shah, director, research, WisdomTree.

Read all the Latest News, Breaking News and Coronavirus News here. Follow us on Facebook, Twitter and Telegram.

What's your reaction?

Comments

https://shivann.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!