Gold trades marginally high at ₹46,820, silver rises by ₹72
The prices of precious metals witnessed a marginal rise on Wednesday as gold futures on the Multi Commodity Exchange (MCX) traded 0.04 per cent higher at ₹46,820 per 10 grams. Silver futures rose by ₹72 to be at ₹69,413 per kg.
In the previous session, gold closed at 46,802 per 10 grams while silver closed at ₹69,341.
This rise in gold prices comes after the skyrocketing trend of 10-year US Treasury yields saw a decline on Tuesday after the Federal Reserve Chair Jerome Powell said that the US central bank will keep its monetary policy accommodative as the US economy still needs support. The fall in the yields made the safe haven of assets attractive.
In the international market too, spot gold rose 0.2 per cent to $1,809.17 per ounce. It hit its highest on Tuesday at $1,815.17 an ounce since February 16. US gold futures too rose 0.1 per cent to $1,807.30.
Silver also saw a rise of 0.4 per cent $27.72 per ounce.
The yellow metal had hit its highest in August last year at ₹56,200 per 10 grams with silver too at its peak costing ₹77,800 per kg.
"But gold might not reverse course to gain substantially until we get a real spike in inflation expectations or a Fed that talks about controlling the yield curve," Reuters quoted IG Market analyst Kyle Rodda as saying.
The week had begun with the prices of the precious metals marginally rising on the back of a weaker dollar and mounting pressure on US Treasury yields.
The opportunity cost of holding gold had decreased in front of an almost a year hike in the returns of the US Treasury yields. The coronavirus vaccination drive across the globe also reinstated faith in the investors of economic recovery.