Mumbai (Commodities Control) - Spot gold is trading down on Thursday retreating from more than 2-weeks high made in the previous session due to fluctuating financial markets and muted investor interest. Spot gold is trading at $1736 per troy ounce while spot silver is trading at $25.14 per troy ounce.
Minutes of the Federal Reserve’s last month meeting released on Wednesday provided no support for the metal.
Federal Reserve officials saw it taking some time before conditions would be met for scaling back massive monthly asset purchases.
Fed official also indicated any spikes in inflation, which would boost gold, are likely to be transitory.
The investors are continuously fleeing from gold-backed exchange traded funds with holding falling to their lowest level since May 2020.
The metal has been under pressure since start of 2021 because of increasing optimism over the post-pandemic economic recovery in the U.S., which has buoyed bond yields and the dollar.
Rising Treasury yields reduce the appeal of bullion, which does not earn interest, while a stronger dollar makes gold less appealing to investors holding other currencies.
Projections for the broader world economy are also looking up, with the International Monetary Fund recently upgrading its global economic growth forecast for the second time in three months.
In its April month World Economic Outlook report, an International Monetary Fund projected the global economy would grow by 6.0% in 2021 with advanced economies growing by 5.1% while emerging markets and developing markets growing by 6.7%.
Hungary tripled its gold reserves in one of the biggest purchases by a central bank in decades, raising bullion holdings to 94.5 tons last month.
According to a World Gold Council report, the global central banks were net buyers of gold in February, led by India, which bought 11.2 tons.
Contrary to global bullion market, gold and silver futures ended higher on Indian bourses backed by retail demand at the lower price level.
For the day, MCX gold and silver futures are forecast to trade in a broad range of Rs. 46,300 – Rs. 46,600 per 10 grams and Rs. 66,400 – Rs. 67,000 per kg, respectively.
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