Gold rate: Yellow metal tepid, silver slips to Rs 71,500
10 Jun 2021
NEW DELHI: Gold prices were subdued on Thursday, weighed down by a firmer dollar. Investors are on the sidelines waiting for clearer signals on inflation levels and economic growth from the US and the European Central Bank. The yellow metal was trading tepid in domestic markets, with marginal cuts.
The buyers of the safe-haven metals are tentative at present amid little risk aversion. However, despite the ‘unlocking’ of states, the demand for yellow metal remains choppy in the world’s second largest bullion market.
Haunted by memories of past US interest rate hikes, the world’s central banks are laying the groundwork for a transition to life with less global stimulus, with many countries already signalling moves to the exit.
The ECB policy decision is due at 17.15 hours IST, followed by U.S. consumer price index report later in the day that is expected to provide further clarity on policymakers’ view on a rise in prices and the future of economic support measures.
The dollar index edged up slightly to trade near 90.137 against its rivals, making gold less appealing for other currency holders. The benchmark 10-year Treasury yields slipped below 1.50 per cent, reducing the opportunity cost of holding non-interest bearing bullion.
Gold futures on MCX were up by 0.19 per cent or Rs 91 at Rs 49,033 per 10 grams. Silver futures shed 0.53 per cent or Rs 384 to Rs 71,500 per kg.
“COMEX gold trades modestly lower near $1890/oz after a 0.1 per cent gain yesterday. Weighing on gold price is firmness in the US dollar index ahead of US inflation data and ECB’s monetary policy meeting today,” said Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities.