Gold Slides, Local Demand Outlook Remains Lax

Published on May 05, 2021 11:59

COMEX Gold futures pulled back yesterday after an impressive upswing on Monday. The COMEX Gold futures had hit a two-week high of $1798 per ounce amid good buying support but flipped back as talks of rising US interest rates weighed on the metal. The counter fell under $1780 per ounce, losing nearly 1% on the day. US interest rates may need to rise to prevent the economy from overheating as more of US President Joe Biden`s economic investment programs come on line, US Treasury Secretary Janet Yellen noted yesterday. There are sustained worries on the local demand front even as the spike in daily Covid-19 cases appeared to ease after hitting the 4 lakh per day mark over the weekend. The surge is still alarmingly high and is keeping business and consumer sentiments under severe stress.