New Delhi: Gold prices remained flat at ₹1.47 lakh per 10 grams in the national capital on Wednesday, while silver made a modest recovery of ₹500 to ₹2.25 lakh per kilogram amid firm trends in international markets.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity remained unchanged at ₹1,47,000 per 10 grams.
However, silver rebounded by ₹500 to ₹2,25,300 per kilogram (inclusive of all taxes) from Tuesday's closing level of ₹2,24,800.
Traders said gold remained range-bound, while silver recovered slightly after witnessing a sharp correction in the previous session.
Gold traded flat in both domestic and international markets on Wednesday. However, a stronger Indian rupee added pressure on domestic precious metal prices, said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
In overseas markets, spot gold traded flat at 4,031.73 US dollars per ounce, while silver edged up nearly 1 per cent to 57.54 US dollars per ounce.
"Spot gold and silver are trading in a narrow range near 4,040 US dollars and 57.5 US dollars per ounce, respectively, as investors cautiously await the Federal Reserve's policy decision later in the day," said Kaynat Chainwala, AVP Commodity Research at Kotak Neo (formerly Kotak Securities).
She added that a firm US dollar continued to cap gold's upside by raising the opportunity cost of holding the precious metal.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said renewed tensions in West Asia have pushed crude oil prices higher, reviving inflation concerns and reinforcing expectations of elevated US interest rates.
According to Jateen Trivedi, Vice President, Research Analyst – Commodity and Currency, LKP Securities, investors will closely watch Federal Reserve Chair Kevin Warsh's press conference for clues on the future path of US monetary policy.
He said the direction of bullion prices would depend on the policy announcement and the subsequent movement in the US dollar and Treasury bond yields.