Gold Rate Today: Yellow metal at 3-week low, silver falls 0.4%

Gold prices were trading lower on Thursday amid strengthening dollar index and rising US treasury yield. Spot gold in the international markets traded at $1625.6 per ounce, with a cut of 0.26%.

Also, the continued pressure of aggressive rate hikes by the Federal Reserve weighed on the commodity.

Gold futures on the

, at around 9:09 am, traded with a cut of 0.25% at Rs 50,074 per 10 grams. In the previous session, it closed at Rs 50,212, falling 0.4%. Silver futures, meanwhile, were also trading lower with a fall of 0.64% at Rs 55,657 per kg.

The dollar index rose 0.1%, hurting gold’s appeal for those holding other currencies, while the benchmark 10-year Treasury yields rose to its highest level since mid-2008.

Gold is a hedge against inflation, nevertheless higher interest rates dent the appeal of non-yielding bullion as the opportunity cost of holding the yellow metal increases.

The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 6.08 tonnes on Wednesday, their biggest one-day outflow since July.

In the international market, spot silver fell 0.4% to $18.36 per ounce, platinum dropped 0.6% to $878.52 and palladium slipped 0.6% to $1,988.78.