Gold Rate Today: Gold prices rise as dollar retreats. Check price of yellow metal in Delhi, Ahmedabad, and other Indian cities
The MCX October gold futures were trading with gains at Rs 58,399 per 10 grams on the MCX, up Rs 109 or 0.19% from Thursday's closing price. Meanwhile, September Silver futures were at Rs 70,400, higher by Rs 382 or 0.55%. Track prices here On the Comex, gold futures were trading at $1,922 per troy ounce on Friday, up $7.30 or 0.38% while silver futures were at $22.8900, lower by $0.175 or 0.770%.
Gold futures ended with losses of Rs 384 per 10 grams as traders booked profits on Thursday, while silver futures rose Rs 328 per kg. Meanwhile, international prices of gold hit their five-month lows in the previous session on fears that the Federal Reserve could hold on to a higher interest rate regime for much longer than anticipated. This strengthened the dollar initially while lifting the bond yields.
«The yellow metal is reeling under the surging US treasury yields over interest rate hike expectations in the following FOMCs as the US economy continues to remain resilient with strong consumer spending and tight labour market conditions, despite the interest rates remaining at 22 years high of 5.25%. The spot gold hit a five-month low of $1,884 on Thursday on the back of strong US economic data. Gold is down 3.6% in August alone and has fallen close to 5% YTD,» Mohammed Imran, Research Analyst at Sharekhan said.
The US treasury yields which have usually inverse relations to gold prices are surging across the tenure. The 30-year treasury yields hit a 12-year high, and 10-year yields topped 4.33% on Thursday, adding pressure on non-yielding gold investments, Imran added. Imran remains bearish on the gold outlook in the absence of any major economic triggers as prices are heading for further decline towards $1,865/$1,850
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