Gold price stable at Rs 44,430 per 10 gm, silver trending at Rs 67,000/kg

Gold price remained unchanged at Rs 44,430 per 10 gm on Thursday, while Silver price trended at Rs 67,000 per kg, according to the Good Returns website.

In New Delhi, the price of 22-carat gold rose by Rs 150 to Rs 43,950 per 10 gm, while in Chennai it was up by Rs 110 to Rs 42,150. In Mumbai, the rate was at Rs 43,430–the same as yesterday, according to the website. The price of 24-carat gold in Chennai was Rs 45,980 per 10 gm.

Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.

In the international market, Gold erased earlier losses to hit a one-week high on Wednesday, as US Treasury yields eased after subdued inflation data.

Spot gold rose 0.5 per cent to $1,723.01 per ounce by 1:59 p.m. EDT (1859 GMT), having bounced as much as $1,723.71, its

highest since March 3.

US gold futures settled 0.3 per cent up at $1,721.80.

“Gold is still taking cues from the Treasury market and today’s data lessens worries about near-term inflation,” said Edward Moya, senior market analyst at OANDA.

“If today’s 10-year note sale has decent demand, could eventually make a run towards $1,730. … The $1,700 level will provide key support … but that should hold unless the bond market sell-off resumes,” Moya said.

10-year US Treasury yields dropped after data showed US consumer prices increased in February, though underlying

inflation remained tepid.

Gold’s status as an inflation hedge has been challenged by higher bond yields, which translate into a higher opportunity cost of holding non-yielding bullion.

Prices fell to their lowest in nine-months on Monday, at $1,676.10.

Real rates have risen sharply over the last few weeks due to higher nominal rates, without a commensurate rise in inflation

expectations, TD Securities wrote in a note.

“With massive Treasury issuance on the horizon, the pressure on higher rates should continue to weigh on in the near-term.”

The US House of Representatives paved the way for a $1.9 trillion US Covid-19 relief bill to be considered on Wednesday.

The European Central Bank is also grappling with a recent rise in yields, but policymakers remain divided on large-scale market intervention ahead of a policy meeting on Thursday.

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