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Bullion Today: Gold Extend losses as Fed Chair Refrained from Pushing Back against Surge in Bond Yield

5 Mar 2021 11:08 am
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Mumbai (Commodities Control) - Spot gold extended losses falling to a fresh 9-month low to trade below $1700 per troy ounce as investors weighed comments from Federal Reserve Chair Jerome Powell, who refrained from pushing back against the recent surge in bond yields.

Spot gold is trading at $1694 per troy ounce while spot silver is trading at $25.25 per troy ounce with the dollar index hitting a 3-month high of 91.65.

Powell sounded a gentle word of caution to the bond market that he’s watching the jump higher in long-term interest rates, but stopped well short of trying to rein them in.

He added that he is monitoring financial conditions and would be “concerned” by disorderly markets. His comments Thursday sent yields soaring and buoyed the dollar.

The U.S. Senate voted to take up a $1.9 trillion pandemic relief bill backed by President Joe Biden, setting off a lengthy and partisan debate expected to end this weekend with approval of the nation’s sixth stimulus since the pandemic-triggered lock downs that began a year ago.

The 10-year Treasury rate reached the peak this week and climbed toward a one-year high on Thursday.

Key data to watch out for today is non-farm payroll and unemployment rate data from the United States later in the day.

MCX gold for near month expiry dropped to 11 month to trade below Rs. 45000 per 10 grams.The weak trend is forecast to continue during the day in both gold and silver. MCX gold futures April expiry is forecast to fall towards Rs. 43800 per 10 grams, while silver for May expiry is forecast to fall towards Rs. 65000 per kg.



       
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