Gold hits two-month high as US yields slip
The dollar eased against its rivals, while benchmark US bond yields hovered near a one-month low hit in the previous session.
Gold prices have started to escalate in April amid concerns of inflationary pressures, after a prolonged dull period, as the Covid-19 pandemic continues to hamper business growth. International gold prices hit a two-month high at $1,771.37 per ounce on Friday afternoon.
“Gold traded higher to a more than one-month peak as US treasury yields slipped despite better than expected US economic data, pushing investors to bullion as a refuge against possible inflation ahead,” said Navneet Damani, vice-president, commodities research, Motilal Oswal Financial Services.
The dollar eased against its rivals, while benchmark US bond yields hovered near a one-month low hit in the previous session.
“Concerns regarding inflation are increasing ahead of massive fiscal aid and ultra-low interest rates across the globe supporting the metal. Gold prices also got a boost when the US government imposed a broad array of sanctions on Russia for alleged actions such as interfering in the 2020 US election,” Damani said.
Damani feels international gold prices could be between $1,745-1,778 per ounce and on the domestic front prices could hover in the range of ₹46,850-47,450 per 10 grams.
After a massive rally of 28% in 2020 as investors rushed to buy the yellow metal, which is considered a safe haven, gold prices slumped in the first three months of this year, falling 6% in February.
However, gold prices gained nearly 4% in April so far as investors remained cautious about other asset classes.
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs