Gold declined close to a one-year low; Silver dipped
Gold and silver prices today fell in Indian markets, tracking softer global rates. On Multi Commodity Exchange, gold futures declined by 0.23% and settled at Rs 44,590. Meanwhile, silver dropped to Rs 64,840 per kg.
In the previous session, the yellow metal dipped 0.35% while the white metal lost 0.5%. Earlier in March, gold prices had decreased to nearly one-year lows of Rs 44,150. Significantly, after today’s dip, gold is down nearly Rs 11,500 from August highs of Rs 56,200.
In international markets, gold rates were flat today at $1,726 per ounce but were on course for about a 1% weekly fall. Furthermore, in the previous session, gold had reached a one-week low of $1,721. The white metal increase marginally to hold above $25, while palladium gained 0.2% to $2,614.51.
Gold in global markets is down nearly 9% so far this year
U.S. Treasury yields increased after a weak auction of 7-year notes, weighing on the yellow metals. Increasing COVID-19 infections supported the safe-haven demand for gold at lower levels. Gold is often considered a safe-haven investment at times of economic uncertainties.
Gold in global markets is down nearly 9% so far this year amid optimism over recovery and a surge in U.S. bond yields, which weighed on demand for gold. Still, COVID-19 concerns and easier monetary policy helped cushion gold’s downfall.
Kotak Securities anticipates the precious metal to trade in a broad range with U.S. dollar and bond yields resulting in mixed trade. According to them, the greenback and bond yields remain key price-determining factors. The brokerage said gold is supported by the resurgence in virus cases, mixed economic data from major economies, selling pressure in Chinese equities, as well as the dovish stance of major central banks. Furthermore, the American currency has also gained amid a worsening outlook for European economies as the rise in virus cases has forced countries to impose stricter restrictions. At the same time, slow vaccine rollout also remains a cause of concern.
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