In international markets, gold rates were steady today after US Fed chief said that central bank would be patient in waiting to lift borrowing costs. Spot gold was up 0.1% at $1,780.06 per ounce but a stronger US dollar capped gains. Jerome Powell, in Congressional testimony overnight, pledged not to raise interest rates too quickly based only on the ‘fear’ of coming inflation.
Benchmark 10-year Treasuries yields inched lower, giving a boost to the yellow metal. Gold prices typically rises on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
The dollar index however inched 0.1% higher to 91.850, making gold more expensive for holders of other currencies.
Among other precious metals, silver gained 0.2% at $25.80 per ounce while platinum climbed 0.1% to $1,080.63.
Gold has support at $1754 while major rallies are seen only a close above $1855, says Geojit, adding that a direct drop below $1754 would trigger further liquidation pressure in the yellow metal.
In testimony to the House Select Subcommittee on Tuesday, Fed chief said price increases recently were higher than expected but are likely to wane.
Gold traders will be watching US. new home sales and current account balance, both due later today. Also, on their radar will be Thursday’s Bank of England interest rate decision and Fed’s stress test results on the largest US banks. (With Agency Inputs)