Home NewsCommodities News gold price today: Gold rate today: Yellow metal gains some strength; silver remains below Rs 56,000

gold price today: Gold rate today: Yellow metal gains some strength; silver remains below Rs 56,000

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gold price today: Gold rate today: Yellow metal gains some strength; silver remains below Rs 56,000

NEW DELHI: Gold prices moved marginally higher on Tuesday as the US dollar took a breather. That said, despite the rise, it languished near two-and-a-half-year lows amid rate hikes fears.

The US Federal Reserve officials on Monday sloughed off rising volatility in global markets and said their priority remained controlling inflation.

Gold futures on

were trading marginally higher by 0.14% or Rs 70 at Rs 49,220 per 10 grams. However, silver futures were flat, up by merely 0.09% or Rs 51 at Rs 55,403 per kg.

Gold prices have declined more than 20% since rising above the key $2,000 level in March, as rapid US rate hikes made the non-yielding bullion less attractive and also pushed the dollar to multi-year highs.

Gold is considered an inflation hedge, rising interest rates increase the opportunity cost of holding the non-yielding asset and bolsters the dollar, in which the bullion is priced.

Russian President Vladimir Putin’s move to mobilize more troops over the conflict in Ukraine drove investors to the safe-haven asset, said ICICIDirect Research.

“Bullion prices were supported as an interest rate hike by the US Fed raised fears over a possible recession,” it added. “However, a steep rise in the US dollar index and US 10 year’s treasury yields restricted upside.”

Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.

In the spot market, the highest purity gold was sold at Rs 49,590 per 10 grams while silver was priced at Rs 55,374 per kg on Monday, according to the Indian Bullion and Jewelers Association.

The spot prices of gold have plunged almost Rs 1,300 per 10 grams in the last two weeks, whereas silver has plunged about 1,900 per kg in almost the same period under review.

“Strength in the US dollar and treasury yields is making the non-yielding asset less attractive. Higher interest rates dull bullion’s appeal since the metal yields no interest,” said Ravi Singh, Vice President and Head of Research, ShareIndia.

Gold may remain sideways to down until some fresh trigger moves the prices upwards, he added.

Global markets Spot gold was up 0.4% at $1,628.78 per ounce, as of 0315 GMT, after hitting its lowest since April 2020 at $1,620.20 on Monday. US gold futures edged 0.2% higher to $1,636.30.

Spot silver rose 0.6% to $18.45 per ounce, platinum fell 0.2% to $850.46 and palladium inched 0.1% lower to $2,044.99.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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