Gold Price Today: MCX gold futures for April delivery are down 0.11 percent at 64,772 per 10 gram.
Gold prices reached a record high on March 5, fueled by increased speculation that the US Federal Reserve will cut interest rates in June of this year. Traders sought refuge in precious metals as a safe haven asset. The focus has now shifted to Federal Reserve Chairman Jerome Powell’s two-day congressional testimony.
The yellow metal is well-known for its ability to serve as a value store during times of economic uncertainty. Its prices stand to benefit from the central bank’s easing of monetary policy.
“We expect gold to trade lower towards 64600 levels, a break of which could prompt the price to move lower to 64460 levels,” said Saish Sandeep Sawant Dessai, Analyst, base metals, Angel One Ltd. Gold puts downward pressure on bond yields and the dollar.
Meanwhile, spot gold reached a high of $2,141 per ounce and traded near $2,124 on Asia Day.
The silver price for May delivery is trading 0.07 percent lower at 73,320 per kilogram.
“Central banks have bought more than 1,000 tons of gold in the last two years, compared to the historical average of 300 tons. “This has compensated for the entire loss in retail and ETF demand,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.
“Gold’s rally is sentiment driven, which was triggered by last week’s poor U.S. economic data that gave little more clarity for a June rate cut,” said Ajay Kedia, director of Kedia Commodities.
Spot platinum rose 0.4% to $884.16 per ounce, palladium rose more than 1% to $958.20, and silver fell 0.3% to $23.63.
-With inputs from Reuters