Gold steady at Rs 1.47 lakh/10g in Delhi, silver recovers Rs 500
Gold prices remained flat at Rs 1.47 lakh per 10 grams in the national capital on Wednesday, while silver made a modest recovery by Rs 500 to Rs 2.25 lakh per kg amid firm trends in the international markets.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity remained unchanged at Rs 1,47,000 per 10 grams.
However, silver rebounded by Rs 500 to Rs 2,25,300 per kilogram (inclusive of all taxes) from Tuesday’s closing level of Rs 2,24,800.
Traders said gold remained range-bound while silver slightly recovered after witnessing a sharp correction in the previous session.
Gold traded flat in both domestic and international markets on Wednesday. However, a stronger Indian rupee added pressure on domestic precious metal prices, said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
In the overseas markets, spot gold traded flat at USD 4,031.73 per ounce and silver edged up nearly 1 per cent to USD 57.54 per ounce.
“Spot gold and silver are trading in a narrow range near USD 4,040 and USD 57.5 per ounce, respectively, as investors cautiously await the Federal Reserve’s policy decision later in the day,” said Kaynat Chainwala, AVP Commodity Research at Kotak Neo (formerly Kotak Securities).
She added that a firm dollar continued to cap gold’s upside by raising the opportunity cost of holding the precious metal.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said renewed tensions in West Asia have pushed crude oil prices, reviving inflation concerns and reinforcing elevated US rate-hike expectations.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, investors will closely watch Fed Chair Kevin Warsh’s press conference for clues on the future path of US monetary policy.
He said the direction of bullion would depend on the policy announcement and subsequent movement in the US dollar and Treasury bond yields.
