Gold and silver prices rose today in Indian markets after slumping in the previous session. On MCX, October gold futures were up 0.3% to ₹51,071 per 10 gram while silver futures rose 0.7% to ₹65,673 per kg. In the previous session, gold had slumped ₹900 per 10 gram while silver had crashed ₹2,500 per kg. Gold prices in India have been very volatile since hitting record highs of ₹56,200 on August 7.
In global markets, gold prices were steady after a sharp fall in the previous session. Spot gold was up 0.1% at $1,929.94 per ounce falling more than 1% in the previous session. Among other precious metals, silver eased 0.1% to $27.01 per ounce while platinum fell 0.7% to $922.07.
US Fed chief Jerome Powell on Thursday outlined a approach to setting US monetary policy that pushed up US bond yields. Higher bond yields increase the opportunity cost of holding gold which does not yield any interest income.
Signalling a more relaxed stance on inflation, Jerome Powell said that the Fed will seek inflation that averages 2% over time, a step that implies allowing for price gains to overshoot.