Gold prices today dip for second day, silver rates fall

In global markets today, gold was steady at at $1,782.65 per ounce as stronger US dollar and firmer US bond yields weighed on the precious metals. The The dollar index strengthened 0.1% against a basket of six major currencies, weighing on bullion by raising its cost to buyers holding other currencies.   US Benchmark 10-year Treasury yields were hovering close to their highest level  in nearly 2 weeks. 

Gold traders will be keenly watching the US Consumer Price Index (CPI) due tomorrow. 

Among other precious metals, spot silver fell 0.2% to $22.34 an ounce while platinum dropped 0.2% to $954.51.

“Spot gold is flat as yields climbed due to vaccine update weighed against Omicron spread while concerns over a potential Russian threat to Ukraine supported metals. Technically, it’s in a juncture where breakout is the only way forward for clear direction and till then we can play range of $1,774 -$1,796,” said Vidit Garg, director at MyGoldKart.

Breakout below $1,760 or above $1,800 will provide further direction, he added. 

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of bullion, which bears no interest.