Gold Prices Rebound Sharply Above $4,366 Amid Bond Yield Pullback
The price of gold rebounded sharply after the US Federal Reserve's interest rate hike on Thursday. Spot gold traded above $4,366 per ounce during the evening session, rising 2.78 percent from its intraday low and up 2.42 percent from its previous close.
US gold futures for December delivery surged 0.52 percent to $4,410 per ounce from its previous close. The rally came despite domestic gold futures falling to an intraday low of Rs 1,50,634 per 10 grams before trading above Rs 1,53,057 (18:45 IST), up 0.38 percent from the previous close.
Vedika Narvekar, Research Analyst- Commodities & Currencies at Anand Rathi Share and Stock Brokers, attributed the bounce in gold prices to a pullback in bond yields following the Fed's rate hike. 'The bounce isn't really about gold itself,' she said. 'Bond yields have cooled off after Wednesday's sharp spike following the Fed's rate hike.'