- Gold rate today: The yellow metal was flat today after a sharp fall over the last two days
Gold and silver rates were mixed today in Indian markets, in tandem with international prices. On MCX, gold futures were up 0.2% to ₹51,660 per 10 gram but still hovered near two-week lows after falling ₹1,000 in previous two sessions. Silver contracts were down 0.4% to ₹56,696 per kg. In global markets, the yellow metal inched higher from recent lows as the dollar and Treasury yields pulled back slightly after US Federal Reserve minutes hinted policymakers may be less aggressive on future rate hikes.
In the July meeting minutes released on Wednesday, Fed officials said the pace of future rate hikes would depend on incoming economic data, as well as assessments of how the economy was adapting to the higher rates already approved.
“Overall the FOMC minutes did not throw up any hawkish surprises. Minutes indicated that Fed would not pull back on interest rate increases until inflation came down substantially. There was no forward guidance but the committee would track data closely to determine its policy actions,” according to IFA Global.
Spot gold price was up 0.3% at $1,765.89 per ounce after falling to a two-week low in the previous session. Among other precious metals, spot silver edged lower to $19.80 per ounce.
“COMEX gold trades marginally higher near $1780/oz amid choppiness in US dollar index and bond yields as FOMC minutes failed to give much clarity about Fed’s monetary tightening stance. FOMC minutes showed that the central bank wants to continue with rate hikes to control inflation but is also wary about overtightening and its impact on economic growth. Fed’s indecisiveness means that market players may look at economic numbers and central bank comments to determine Fed’s next move.” said Ravindra Rao, EPAT, VP- Head Commodity Research at Kotak Securities.
“Gold may remain volatile as support from global growth worries, geopolitical issues and inflation concerns is countered by weaker investor interest and concerns about consumer demand. However, with Fed expected to continue with rate hikes, US dollar may remain supported and this may pressurize gold,” he added.
Despite the recent price drop, investor interest in gold has waned. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.32% to 989.01 tonnes on Wednesday from 992.20 tonnes on Tuesday.
Analysts say that gold has been supported on the downside by renewed China-US tensions over Taiwan after Washington and the island agreed to start trade talks under a new initiative. (With Agency Inputs)
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