Gold prices rose in the domestic futures market on Thursday morning as the US dollar strengthened and government bond yields eased slightly. This comes after expectations of an aggressive interest rate cut by the US Federal Reserve (Fed) receded. The benchmark 10-year Treasury yield fell about 38 basis points to 4.22%, after hitting a three-month high earlier in the week. Meanwhile, the US dollar remained flat near its highest level in three months.
On Multi Commodity Exchange (MCX), gold due on December 5 was trading 0.20 per cent higher at Rs 77,965 per 10 grams at around 9:15 am. Silver also gained, with MCX silver price increasing by 0.49% to trade at Rs 97,439 per kg.
Internationally, gold prices rose on the back of demand as a safe-haven asset. However, the rise was limited due to the strong US dollar. Spot gold hit a record high of $2,758.37 on Wednesday, buoyed by uncertainty surrounding the 2024 US elections and tensions in the Middle East.
Earlier this week, MCX gold and silver both hit new all-time highs, but faced profit taking. MCX Gold for December 5 contract hit a high of Rs 78,919 per 10 grams before closing 1% lower at Rs 77,868. Similarly, silver price also hit a high of Rs 100,081 per kg but fell by 2.92% to close at Rs 97,052 per kg.
