Gold prices in the international markets are on course to erase all its 2021 losses. This is after the Federal Reserve, the country's apex bank, reiterated that the effects of the price rise shall be transitory in nature and also dampened any speculation around tightening the monetary policy anytime soon.
Other factors that led to an increase in gold prices internationally have been decline in the US treasury yield as well as fall in new home sale in the US. Moreover, dollar index has been continuing to drift below 90 and was last quoting at 89.65 at 8:27 pm EDT.
Spot gold rose 1% to $1,899.19 an ounce at 3:11 p.m. in New York after hitting the highest since Jan. 8.
Gold prices in India
In India too, gold prices on the MCX are now inching close to Rs. 49000 per 10 gm in line with gains in gold prices internationally.
Gold prices on course to erase all of its 2021 losses
Both retreat in the US dollar and treasury yield, boost the demand for safe haven bullion. Other than that the recent dip in new home sales data together with inflation threat is adding to the gains in the gold demand and hence its prices.