MCX gold price sheds Rs 180, silver by over Rs 500

NEW DELHI: Gold and silver futures declined in Thursday's trade as firm US treasury yields continued to weigh on the non-yielding bullion.

MCX gold futures for April delivery were trading Rs 180 or 0.40 per cent lower at Rs 44,768 per 10 grams. Silver futures for May delivery were quoting at Rs 67,473 per kg, down Rs 527 or 0.78 per cent.

Benchmark US Treasury yields held near 1.5 per cent, threatening gold's appeal as an inflation hedge as they increased the opportunity cost of holding bullion, which pays no returns, while the dollar rose against rivals.



Globally, spot gold eased 0.2 per cent at $1,734.16 per ounce, having dropped to their lowest since June 15 at $1,706.70 on Tuesday. US gold futures held steady at $1,734.10. Silver rose 0.1 per cent to $26.11 an ounce.

Investors now await Federal Reserve Chairman Jerome Powell's remarks before a virtual Wall Street Journal Jobs Summit at 1705 GMT, for clues on the central bank's monetary policy outlook.

Several Fed officials have downplayed the rise in yields as a reflection of an improving economy, while maintaining that they will keep policy unchanged.

Reflecting investor sentiment, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since May 2020 on Wednesday.

(With inputs from Reuters)