The gold futures for April were down 0.96 percent or Rs 435.00 to Rs 45,113.00 per 10gm on MCX at 4.37 pm today
The price of gold struggled near 10-month lows amid weak global cues on Wednesday, down by Rs 11,000 as compared to the August highs of Rs 56,200.
The gold futures for April were down 0.96 percent or Rs 435.00 to Rs 45,113.00 per 10g on MCX at 4.37 pm. This was the sixth consecutive day of decline, reported Live Mint.
In contrast, silver futures were trading at Rs 67,526.00 per kg, up by Rs 187.00 or 0.28 percent. Compared to the August highs of Rs 56,200, the price of the yellow metal is now down by Rs 11,000, the report further added.
The reason behind the fall in gold prices on Wednesday in the global market is the firm US treasury yields, which continued to weigh on the non-yielding bullion. Spot gold eased 0.2 percent at $1,734.16 per ounce, Hindustan Times reported.
The benchmark US Treasury yields held near 1.4 percent levels last week after a sharp fall. Also, silver dipped 0.3 percent to $26.67 an ounce, whereas palladium climbed 0.6 percent to $2,376.50. Platinum also shed 0.3 per cent to $1,200.50.
Here are a few other reasons causing this subdued performance:
First, the value of the Indian Rupee is appreciating against the US Dollar. Till now, Rupee has appreciated by 3.5 percent approximately, since the first week of August 2020.
Second, due to the reduction in import duty announced by Union Finance Minister Nirmala Sitharaman in the Budget 2021, gold prices in Rupee terms are subdued.
Third, the US Federal Reserve has commented that the US econnoy is a “long way from our employment and inflation goals“, which indicated easy monetary policy is likely to stay in place.
Fourth, some other key events that would be monitored by the gold traders’ this week includes the US Federal Reserve Beige Book, a meeting of the oil producers’ group on Thursday, data on US factory orders, initial jobless claims, durable goods orders, US employment report. All these details will be released this week.
Fith, the last tranche in Sovereign Gold Bonds 2020-21 is currently open for subscription in India with an issue price of Rs 4,662 per gram. However, those who apply online and further make the online payment will get a discount of Rs 50 per gram. For them, the issue price will be Rs 4,612. The issue will close on 5 March, 2021.
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