Gold Prices Today: Strong US dollar, further interest rate hikes to cap yellow metal#39;s gains

Gold Prices Today: Strong US dollar, further interest rate hikes to cap yellow metal#39;s gains

Higher inflation makes safe havens more appealing, driving up demand for precious metals. However, rising interest rates will limit gold's gains, and selling pressure is predicted in today's session at higher levels, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.





May 12, 2022 / 10:40 AM IST





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Gold gained on Thursday in the international market as the dollar and Treasury yields slipped after the US consumer price data suggested inflation might have peaked in April, allaying some concerns of more aggressive Fed rate hikes. A weaker dollar makes gold attractive for overseas buyers, while lower Treasury yields reduce the opportunity cost of holding zero-yield bullion.

Spot gold was up 0.2% at $1,855.11 per ounce, as of 0103 GMT, having risen as much as 1.1% in the previous session. US gold futures rose 0.2% to $1,856.90.

At 9:39 am, gold contracts were up 0.17 percent at Rs 50,907 for 10 gram on the Multi-Commodity Exchange (MCX), while silver shed 0.17 percent at Rs 60,650 a kilogram.

Gold and silver prices bounced yesterday as the US dollar index retreated after US inflation data rose to 8.3% YoY against 8.1% forecasted earlier. The benchmark treasury yield in