Gold price slips to Rs 46,770 per 10 gm, silver trending at Rs 70,510 a kg

In Mumbai, the rate decreased to Rs 45,770
Gold price declined to Rs 46,770 per 10 gm on Thursday, while Silver price was trending at Rs 70,510 per kg, according to the Good Returns website.

Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.

In New Delhi, the price of 22-carat gold dropped by Rs 100 to Rs 45,900 per 10 gm, while in Chennai it slipped by Rs 110 to Rs 44,170. In Mumbai, the rate decreased to Rs 45,770 according to the website. The price of 24-carat gold in Chennai was at Rs 48,170 per 10 gm.  

In the international market, Gold pared some losses after dipping more than 1 per cent earlier on Wednesday, helped by dovish comments from Federal Reserve Chair Jerome Powell, but bullion struggled for traction as elevated US Treasury yields dampened its allure as an inflation hedge.

Spot gold was down 0.4 per cent at $1,798.10 per ounce by 02:30 p.m. EST (1930 GMT), after dropping as much as 1.2 per cent earlier in the session.

US gold futures settled down 0.4 per cent at $1,797.90.

"Rising bond yields continue to weigh on the gold market. Gold has not found any path to a sustainable recovery even with talks about additional stimulus measures," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

US benchmark 10-year Treasury yields touched 1.4 per cent for first time since February 2020. Rising yields tend to hurt bullion's appeal as an inflation hedge since they increase the opportunity cost of holding the metal.

Powell on Wednesday reiterated that US interest rates will remain low and the Fed will keep buying bonds to support the US economy.

In his testimony before the US Senate on Tuesday, Powell said monetary policy still needed to be accommodative, with economic recovery "uneven and far from complete."

"Over the last two days a very dovish and hence risk-friendly Powell has cheered the stock market which is bearish for USD and as such has given gold a little breathing space," said Tai Wong, a trader at investment bank BMO in New York.

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