Gold rate was flat today after a sharp fall over the last two days.
Today's Indian market prices for gold and silver varied from those on the global market. Gold futures on the MCX increased by 0.2% to 51,660 per 10 grams, although they were still close to two-week lows after losing by 1,000 in the previous two days. The price of silver contracts fell 0.4% to Rs. 56,696 per kg. The dollar and Treasury yields retreated slightly as US Federal Reserve minutes suggested officials may be less aggressive on future rate hikes, pushing the yellow metal slightly higher from recent lows on international markets.
In the July meeting minutes released on Wednesday, Fed officials said the pace of future rate hikes would depend on incoming economic data, as well as assessments of how the economy was adapting to the higher rates already approved.
“Overall the FOMC minutes did not throw up any hawkish surprises. Minutes indicated that Fed would not pull back on interest rate increases until inflation came down substantially. There was no forward guidance but the committee would track data closely to determine its policy actions," according to IFA Global.
After hitting a two-week low in the previous session, the spot gold price was up 0.3% at $1,765.89 per ounce. Spot silver, among other precious metals, decreased to $19.80 for an ounce.
“COMEX gold trades marginally higher near $1780/oz amid choppiness in US dollar index and bond yields as FOMC minutes failed to give much clarity about Fed’s monetary tightening stance. FOMC minutes showed that the central bank wants to continue with rate hikes to control inflation but is also wary about overtightening and its impact on economic growth. Fed’s indecisiveness means that market players may look at economic numbers and central bank comments to determine Fed’s next move." said Ravindra Rao, EPAT, VP- Head Commodity Research at Kotak Securities.
"Gold may remain volatile as support from global growth worries, geopolitical issues and inflation concerns is countered by weaker investor interest and concerns about consumer demand. However, with Fed expected to continue with rate hikes, US dollar may remain supported and this may pressurize gold," he added.
Investor interest in gold has decreased despite the current price decline. The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, saw a decline in its holdings on Wednesday, dropping 0.32% to 989.01 tonnes from 992.20 tonnes on Tuesday.
After Washington and the island decided to begin trade negotiations under a fresh initiative, analysts claim that gold has been supported on the downside by heightened tensions between China and the US over Taiwan.
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 "After Rs 1000 drop in two days, Gold prices near lowest of this month")
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