Gold Sees Muted Action

Published on Mar 25, 2021 12:40

Gold futures saw a muted rangebound movement as firm US dollar weighed on the sentiments. The US dollar index hit a near four month high of 92.60. COMEX Gold futures are trading marginally up at $1736 per ounce. Retail buying in India is picking up but worries over rising Covid-19 cases and lockdowns in some regions can keep sentiments under check in near term. Gold traders also focused on latest comments from the US Federal Reserve Chairman Jerome Powell as he stated that Powell said prices would probably rise due to so-called base effects as very low readings from last year fall out of the calculation, along with some pressure from pent-up spending and supply-chain bottlenecks. Any surge in prices is expected to be temporary and the long period of low inflation in the US would keep price pressures in check, he noted.