Gold Price Today, 20 May 2021: Gold, silver prices extend decline on lackluster global cues

Gold is seen as a hedge against inflation, but an increase in rates from the Fed will dull bullion`s appeal in international markets.

New Delhi: Gold and silver prices have been easing lately with silver prices witnessing downfall for the third straight day on Thursday

Gold futures for June delivery on MCX fell On MCX, gold futures were down 0.39% to Rs 48,483 per 10 grams while silver future for was off 0.4% to ₹72,073 per kg.

International Gold prices climbed on Thursday, aided by growing U.S. inflationary pressure, although gains were curbed as the dollar rebounded and U.S. Treasury yields rose after Federal Reserve policymakers hinted at a possible shift in future policy. Spot gold was up 0.3% at $1,875.74 per ounce by 0525 GMT. U.S. gold futures eased 0.3% to $1,876.20, a Reuters report said.

Gold is seen as a hedge against inflation, but an increase in rates from the Fed will dull bullion`s appeal as it translates into higher opportunity cost of holding the non-yielding asset. Palladium gained 0.9% to $2,894.14 per ounce, silver was steady at $27.76, while platinum rose 0.4% to $1,195.09, Reuters added.

Gold in the national capital on Wednesday fell by Rs 97 to Rs 47,853 per 10 gram amid muted global precious metal prices. In the previous trade, gold had closed at Rs 47,950 per 10 gram. Silver also tumbled Rs 1,417 to Rs 71,815 per kilogram from Rs 73,232 per kilogram in the previous trade.