Gold price as on April 7, 2022: Yellow metal rates steady on MCX
On Thursday, April 7, 2022, prices of the yellow metal were stable on MCX as gold futures traded at Rs 51,623 per 10 grams, while silver traded at Rs 66,330 per kg.
In global markets, spot gold was down 0.2 per cent at $1,922.08 an ounce as the US dollar edged closer to a two-year high against a basket of currencies after the Fed, minutes after central banks pushed to shore up inflation. was preparing to move on the offensive.
Fed minutes released on Wednesday indicated that a half-point rate hike is possible, and that the Fed is considering reducing its massive bond holdings at a maximum pace of $95 billion per month to tighten financial conditions. Used to be.
Several Fed officials said they were prepared to raise the rate of growth by half a percentage-point in upcoming policy meetings to tame inflation, according to minutes released on Wednesday.
The benchmark US 10-year Treasury yield hovered near hitting multi-year highs in the previous session, adding to the opportunity cost of holding non-yielding bullion.
Commenting on gold prices, Ravindra Rao, Vice President and Head of Commodity Research, Kotak Securities said, “COMEX gold turned marginally closer to $1925/oz after a slight decline yesterday. Gold remained stable as the US dollar index and US 10-year bond yields stalled. FOMC minutes later came in largely in line with expectations. FOMC minutes showed the possibility of a sharp rate hike and the start of a balance sheet contraction. Gold to Russia-Ukraine tensions and sugar Concerns about the health of the economy are also supportive. Gold continues to trade in the range above $1900/oz amid mixed signals and the trend may continue unless new triggers occur, although geo-economics Political risks may support prices.”