The trends in the international markets are pointing towards a massive stimulus. This hope for change strengthened the prospects for these precious metals make the domestic rates of Gold and Silver see an increase. In the morning trade on Wednesday, their future prices were visibly increased. The effect was observed on the dollar index also as it eased further. From a four-week hit earlier in the week, the most of the US treasury fell. This downfall took place after Yellen mentioned that the tax cuts passed in 2017 for the large corporations will soon be revoked. Gold has been used as a buffer against inflation and dollar debasement and is expected to continue having the same effect and use on the customers.
The Gold futures on the MCX increased by about 0.28 percent or by Rs. 136 at Rs. 49,119 every 10 grams of Gold. Talking about Silver, its futures added to 0.39 percent or Rs. 258. The rate reached at Rs 66,295 per kg. Furthermore, the gold trades reached an all time high at COMEX gold trades. It was recorded near $1,845/oz after a 0.6 per cent gain yesterday. The comments of Janet Yellen, the US Treasury Secretary nominee on the US dollar index correction further made people expect the presence of additional stimulus that will lead to pressure on the US Dollar.
Talking of the domestic rates of gold, the spot market showed a gain of Rs. 198 which lead to the price reaching Rs 48,480 per 10 gram. The rates of silver also increased by Rs 1,008 to Rs 65,340 per kilogram. It is expected that the gold prices will remain in the $1,800-1,860/oz margin unless there are fresh triggers, however certain bias may show that the gold rates will go on an upside due to the stimulus expectations.
