Gold silver futures prices slip on Tuesday, even as analysts believe the recent risk-off sentiment may revive safe-haven bets for bullion. Analysts said the upcoming announcement of further stimulus measures by the newly elected US government may support gold, as a perfect hedge against possible inflation.
Gold Silver Futures Prices
Gold Rates – Spot & Futures (.995 purity)(MCX)
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Rs/10 Grms Expiry: 05-Apr-2021
Globally, spot gold was up 0.2 per cent at $1,726.84 per ounce while US gold futures added 0.1 per cent to $1,723.80, thanks to a retreat in US treasury yields and optimism over the $1.9 trillion coronavirus relief bill, which lifted the allure of the non-yielding metal.
Data showed holdings of the world’s largest gold-backed exchange-traded fund — the SPDR Gold Trust — fell 0.8 per cent to 1,084.5 tonnes on Monday.
While gold is considered a shield against inflation, higher bond yields have of late threatened that status, since they translate into a higher opportunity cost of holding bullion, which pays no return.
The near-term trigger for gold prices would be this week’s debate in the US senate over US President Joe Biden’s coronavirus relief bill this week.