After there have been pronounced calls over Fed tapering nearing, dollar has been inching higher and weighing on gold. Gold which gained on safe haven demand buying is again losing its sheen on the backdrop of strengthening in the dollar. Fed tapering is nothing but the likelihood of a gradual reduction in its asset purchasing or bond buying programme through which the US central bank infuses liquidity in the market but now as recovery is seen to be picking up, policymakers view it to be the apt time to go about it. On the move, dollar has now inched to 9-month high and this weighs on the commodities with underlying prices in the dollar currency.
As at the time of writing this report, gold in the international market for spot gold was quoting marginally higher by 0.3% at $1785.7 per ounce as at 02:02 NY Time. While gold futures also in line quoted higher by 0.33% at $1788.95 for December delivery.
Meanwhile, tracking international rates, gold on the MCX for delivery in October also gained in line by a tad bit and last quoted higher by Rs. 158 or 0.33% at Rs. 47,327 per 10 gm. Silver in line gained by Rs. 90 to Rs. 62,223 per kg.
Back in the domestic market, after gold in the international markets toppled to below their key level of $1800 per ounce saw a sharp plunge but nevertheless, it also made a remarkable recovery and in Delhi quoted at a price of Rs.50,440 per 10 gm for 24 Karat on Thursday (August 19, 2021).