NEW DELHI: Gold prices were almost flat on Wednesday, as concerns over possibility of a higher US interest rates countered a subdued dollar, while palladium held firm after scaling a record high in the previous session.
The gain in US treasury yields over the comments of rate hikes from Treasury secretary Jennet Yellen pressured gold prices. However, the Fed stance is clear to keep ultra low monetary policy.
The dollar index was down 0.1 per cent against its rivals, making gold less expensive for other currency holders. Meanwhile, there are speculations that a lockdown may be imposed in India to curb the spread of the virus.
Gold futures on MCX were up 0.20 per cent or Rs 96 at Rs 46967 per 10 grams. Silver futures rose 0.55 per cent or Rs 385 to Rs 70033 per kg.
COMEX gold trades little changed near $1779/oz after a 0.9 per cent decline yesterday. Gold steadied as market players assessed Feds monetary policy stance amid mixed comments from Fed officials and US Treasury Secretary and mixed economic data. Amid other factors, support from persisting virus risks, inflation concerns and US stimulus measures is countered by weaker investor interest and concerns about Indian consumer demand., said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.