Gold prices today jump again, cross key level; silver rates surge
Premium- In global markets, gold rates today hit a 3-month high
- Weaker US dollar and a dip in Treasury yields boosted gold and silver
Gold and silver prices in India moved higher today, in tandem with uptick in global precious metal rates. On MCX, gold futures were up 0.7% to ₹48,003 per 10 gram while silver rates jumped 1.2% to ₹71,940 per kg. In the previous session, gold had jumped 0.5% while silver had surged 0.9%. In global markets, gold rates hit a 3-month high, boosted by a weaker US dollar and a dip in Treasury yields. Spot gold was up 0.6% at $1,852.39 per ounce.
The dollar index fell to 90.293 before trading flat at 90.370, making gold less expensive for other currency holders. Meanwhile, benchmark US 10-year Treasury yields steadied after hitting a one-month high hit last week. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.
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Among other precious metals, silver was up 0.9% at $27.66 per ounce while platinum gained 0.3% to $1,228.50.
US bond yields dipped after a report showed the value of overall retail purchases was essentially unchanged in April. Most US central bank policymakers see the upward pressure - evident in a 4.2% jump in annual consumer prices last month - as transitory.
Virus resurgence in Singapore, Taiwan and some other Asian countries also boosted gold.
After slumping in the first quarter, gold has recovered amid uncertainty over the pace of the global recovery from the pandemic. Rising inflation expectations and assurances from the Fed that monetary policy will remain accommodative has also supported the precious metal.
The Fed has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2% and is on track to "moderately" exceed that level for some time.
Gold traders will look for clues on the US central bank's monetary policy and any comments on rising inflation in the minutes of the Fed's last meeting due on Wednesday.
The first tranche of Govt of India's Sovereign Gold Bonds 2021-22 opens for subscription today. The issue will close on May 21. The government will issue six tranches of gold bonds from May 2021 to September 2021, it said on Wednesday. The Reserve Bank of India will issue the bonds on behalf of the Government of India.
The issue price has been fixed at ₹4,777 per gram of gold and investors applying online and making the payment against the application made through digital mode will get a discount of ₹4,727 per gram of gold.
(With Agency Inputs)
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