Yellow metal prices were steady on the MCX on Thursday, April 7, 2022, as gold futures stood at Rs 51,623 per 10 gram while silver traded flat at Rs 66,330 per kg.
In global markets, spot gold was down 0.2 per cent at $1,922.08 per ounce as US dollar moved near a two-year high against a basket of currencies after Fed minutes showed the central bank is preparing to move aggressively to head off inflation.
The Fed minutes, released on Wednesday, signalled half-point rate increases are possible, and that the Fed is considering reducing its massive bond holdings at a maximum pace of $95 billion a month to tighten financial conditions.
Many Fed officials said they were prepared to raise rates in half-percentage-point increments in coming policy meetings to tame inflation, according to the minutes released on Wednesday.
The benchmark US 10-year Treasury yield hovered close to multi-year highs hit in the previous session, increasing the opportunity cost of holding non-yielding bullion.
Commenting on gold prices, Ravindra Rao, Vice President and Head of Commodity Research at Kotak Securities said, "COMEX gold trades little changed near $1925/ounce after a minor decline yesterday. Gold steadied as US dollar index and US 10-year bond yield stalled post FOMC minutes which came in largely in line with expectations. FOMC minutes showed possibility of faster rate hikes and start of reduction of balance sheet. Gold is also supported by Russia-Ukraine tensions and concerns about health of Chinese economy. Gold continues to trade in a range above $1900/ounce amid mixed cues and this trend may continue unless there are fresh triggers however geopolitical risks may keep prices supported."
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