Gold price in India continued to remain at five-month low on Wednesday. On the Multi-Commodity Exchange (MCX), October gold contracts rose 0.17 per cent to Rs 46,042 for 10 grams at August 11. Gold has been hovering around Rs 46,000 zone for the last two days.
Silver was trading flat on Wednesday. The precious metal future saw a marginal increase of 0.10 per cent to 62,700 on August 11. In the international market, gold prices also edged higher on Wednesday. Spot gold was up 0.2% at $1,732.49 per ounce by 0245 GMT, while US gold futures rose 0.1% to $1,733.50. US Treasury yields hit their highest levels since mid-July.
Higher yields increase the opportunity cost of holding bullion, which pays no interest. US dollar dollar index held firm near a three-week high against its rivals, making gold gold expensive for the holder of the other currencies. The investors are now keenly waiting for US personal consumption report due on Wednesday.
The sudden increase in job employment has raised fears of a sooner-than-expected US interest rate hike among the investors. This was one of the main reasons behind yellow metal price dropping to a four-month low in the international market on Monday.