Gold rate today: Yellow metal drops after hitting one-month peak; silver below Rs 62,000 on MCX

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NEW DELHI: Gold prices retreated on Wednesday from a one-month peak scaled in the previous session, although prices flitted in a tight range as cautious investors stayed on the sidelines ahead of US inflation data due later this week.

Investors’ focus remains on the US consumer price index report due on Thursday. The data is likely to offer cues on the US Federal Reserve’s rate hike stance.

Gold futures on 

MCX NSE -1.11 % was trading lower, down by 0.25% or Rs 135 at Rs 51,500 per 10 grams. Similarly, silver futures tanked 0.31% or Rs 190 at Rs 61,769 per kg.

Gold is seen as a hedge against inflation, which rising rates aim to tackle, thereby diminishing the metal’s appeal. Higher interest rates also make other assets more attractive compared to non-interest-bearing bullion.

ICICIDirect Research said gold prices edged higher on Tuesday amid a drop in US 10-year treasury yields while investors

braced for the US inflation data later this week that could determine the Federal Reserve’s future policy path.

“Bullion prices were supported by a decline in the US dollar index,” it added. “Gold prices are expected to trade with a positive bias for the day amid weakness in US 10-year treasury yields.”


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