Gold and silver advanced on Friday as after the US Fed chairman Jeremy Powell said the central bank was ready for more inflation tolerance.
The Fed’s new monetary policy strategy pledges to address “shortfalls” from the “broad-based and inclusive goal” of full employment and also promises to aim for 2 per cent inflation on average.
Gold futures on MCX were up 0.42 per cent or Rs 213 at Rs 51,115 per 10 grams. Silver futures climbed 1.03 per cent or Rs 670 to Rs 65,860 per kg.
Gold prices rallied Rs 743 to Rs 52,508 per 10 gram in the national capital on Thursday, while silver also witnessed heavy demand and jumped Rs 3,615, according to HDFC Securities. Silver prices rose to Rs 68,492 per kg.
Globally, gold steadied as worries over an economic slump caused by the COVID-19 pandemic countered pressure from a jump in US Treasury yields on Federal Reserve Chair Jerome Powell’s offer for more inflation tolerance.
Spot gold was up 0.1 per cent at $1,929.94 per ounce by 0117 GMT, after falling more than 1.2 per cent on Thursday. Gold has fallen more than 0.5 per cent so far this week. US gold futures rose 0.2 per cent to $1,936.30.
Longer-term U.S. Treasury yields climbed to their highest levels in months on Thursday. Higher bond yields increase the opportunity cost of holding non-interest bearing gold. Silver eased 0.1 per cent to $27.01 per ounce, platinum fell 0.7 per cent to $922.07, while palladium gained 0.8 per cent to $2,178.48.