Gold prices edge lower as market awaits US Fed statement

Gold prices edge lower as market awaits US Fed statement
Image: Unsplash

Gold prices on Wednesday edged lower on US dollar strengthening. Investors in the market are also waiting for the US Fed meeting’s outcome.

The US dollar was steady near the one-month high against its counterparts. This, in turn, makes gold prices go up for other currency holders.

Some investors also view the yellow metal as a hedge against higher inflation that could follow stimulus measures.

In 2021, demand for the yellow metal from jewellers and central banks is likely to recover. But gold would stay below pre-pandemic levels in the market.

Also buying of bullion by exchange-traded funds (ETFs) is poised to fall. The demand for physical gold remains tepid in India, the world’s second-largest bullion market.

Gold futures on MCX were up by 0.08 per cent or Rs 37 at Rs 48,461 per 10 grams. Silver futures shed 0.41 per cent or Rs 291 to Rs 71,539 per kg.

The highest purity gold was sold at Rs 48,598 while silver was priced at Rs 71,202 on Tuesday in the spot market.

ALSO READ: Wholesale Inflation Increased To 12.94 Percent In May, Know Why