Gold and silver prices moved higher in India today. On MCX, gold futures were up 0.7 per cent to Rs 48,003 per 10 gram while silver rates jumped 1.2 per cent to Rs 71,940 per kg. In the previous session, gold had jumped 0.5 per cent while silver had surged 0.9 per cent. In global markets, gold rates hit a 3-month high, boosted by a weaker US dollar and a dip in Treasury yields. Spot gold was up 0.6 per cent at $1,852.39 per ounce.

The dollar index fell to 90.293 before trading flat at 90.370, making gold less expensive for other currency holders. Meanwhile, benchmark US 10-year Treasury yields steadied after hitting a one-month high hit last week. Lower bond yields reduce the opportunity cost of holding non-interest-bearing gold.

Among other precious metals, silver was up 0.9 per cent at $27.66 per ounce while platinum gained 0.3 per cent to $1,228.50.

US bond yields dipped after a report showed the value of overall retail purchases was essentially unchanged in April. Most US central bank policymakers see the upward pressure – evident in a 4.2 per cent jump in annual consumer prices last month – as transitory. Virus resurgence in Singapore, Taiwan and some other Asian countries also boosted gold.

After slumping in the first quarter, gold has recovered amid uncertainty over the pace of the global recovery from the pandemic. Rising inflation expectations and assurances from the Fed that monetary policy will remain accommodative has also supported the precious metal.

The Fed has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2 per cent and is on track to “moderately” exceed that level for some time. Gold traders will look for clues on the US central bank’s monetary policy and any comments on rising inflation in the minutes of the Fed’s last meeting due on Wednesday.