Gold prices on Wednesday held steady as the dollar firmed after Federal Reserve Chairman Jerome Powells US economic outlook reinforced views the central bank is on track to steadily hike interest rates.
MCX Gold futures were almost flat at Rs 29,732 per cent 10 gram in early trade. MCX Silver futures were also trading on a flat note at Rs 38,510 per 1 kg, down 0.03 per cent against its previous close.
The dollar was trading higher on Wednesday, hitting a six-month peak against the yen, after Powell gave an upbeat outlook for the US economy.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its latest holdings stood at 794.01 tonnes, remain unchanged from previous business day.
Holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10164.59 down 33.65 tonnes, from previous business day.
Nirmal Bang Commodities said, “We expect gold prices to trade range bound to lower for the day, as the dollar firmed after Federal Reserve Chairman Jerome Powell's US economic outlook.”