Gold Futures Slips Below Rs 47,500/10 Grams, Silver Below Rs 71,500/Kilogram

Prices of precious metals (gold and silver) declined on Wednesday on the back of weak global cues ahead of US consumer price data due later in the day.

Gold Futures Slips Below Rs 47,500/10 Grams, Silver Below Rs 71,500/Kilogram

In the international market, spot gold was down 0.6% at $1,826.89 per ounce by 8:43 am.

Gold, Silver Price Today: Prices of precious metals (gold and silver) declined on Wednesday on the back of weak global cues ahead of US consumer price data due later in the day. Gold futures on Multi Commodity Exchange (MCX) fell as much as 0.35 per cent to hit an intraday low of Rs 47,465. In spot market, 24 carat gold also known as fine gold was sold at Rs 47,790 per 10 grams, according to India Bullion and Jewellers Association (IBJA). Likewise, 22 carat gold was sold at Rs 46,160 per 10 grams, 18 carat gold was priced at Rs 38,230 and 14 carat gold was sold at Rs 31,780 per 10 grams in the spot market.

In the international market, spot gold was down 0.6 per cent at $1,826.89 per ounce by 8:43 am. U.S. gold futures eased 0.5 per cent to $1,826.20. Higher US Treasury yields and a slight rebound in the dollar ahead of US inflation data added to lacklustre movement in gold, analysts said.

Concerns of a potential acceleration in inflation dragged down the US currency to a more than two-month low in the previous session and drove Asian shares to one-month lows earlier on Wednesday.

Benchmark US 10-year Treasury yields scaled a more than one-week peak, increasing the opportunity cost of holding gold.

Some investors view gold as a hedge against higher inflation that could follow stimulus measures, but higher Treasury yields have weighed on non-yielding bullion's appeal this year.

Back home, silver was also witnessing subdued trading session as silver futures for delivery in July fell as much as 0.87 per cent to hit an intraday low of Rs 71,300 per kilogram on the MCX. In spot market, silver was sold at Rs 70,969 per kilogram, according to IBJA.

(With inputs from Reuters)