Gold Steady At ₹1.47 Lakh Per 10 Grams In Delhi

Gold prices in Delhi remained steady at ₹1.47 lakh per 10 grams on Wednesday, according to the All India Sarafa Association. The price of the yellow metal with 99.9 per cent purity did not change from the previous day.

However, silver prices rebounded by ₹500 to ₹2,25,300 per kilogram, inclusive of all taxes. This recovery came after a sharp correction in the previous session.

Traders attributed the range-bound movement of gold to firm trends in international markets. A stronger Indian rupee also added pressure on domestic precious metal prices, said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.

In the overseas markets, spot gold traded flat at USD 4,031.73 per ounce, while silver edged up nearly 1 per cent to USD 57.54 per ounce.

The Federal Reserve's policy decision, scheduled for later in the day, was keenly awaited by investors. Kaynat Chainwala, AVP, Commodity Research, at Kotak Neo, said that spot gold and silver were trading in a narrow range near USD 4,040 and USD 57.5 per ounce, respectively, as investors cautiously awaited the decision.

A firm dollar continued to cap gold's upside by raising the opportunity cost of holding the precious metal, Chainwala added. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said that renewed tensions in West Asia had pushed crude oil prices, reviving inflation concerns and reinforcing elevated US rate-hike expectations.

The direction of bullion would depend on the policy announcement and the subsequent movement in the US dollar and Treasury bond yields, said Jateen Trivedi, VP, Research Analyst – Commodity and Currency, LKP Securities. Investors would closely watch Fed Chair Kevin Warsh's press conference for clues on the future path of US monetary policy.

The US Fed policy decision is significant for the precious metals market, as it can impact the value of the US dollar and influence investor sentiment. A change in interest rates can also affect the attractiveness of gold and silver as investment options.

In conclusion, the steady gold price and the rebound in silver price in Delhi reflect the cautious mood of investors ahead of the US Fed policy decision. The outcome of the decision will be closely watched by market participants, as it can have a significant impact on the precious metals market.