India has a seen a fall in the gold and silver prices for the 4th day in a row today. The drop is related to the pressures experienced due to the decline in rates worldwide.
The June gold futures on MCX went down 0.4% to near 1-year lows of Rs. 44,538 per 10 gram. Meanwhile silver dropped 0.3% to Rs. 63,985 per kg. As a result of both these lows, losses extended to the fourth day.
Likewise, the earlier session saw gold dropping 0.8% whereas silver fell 1% per kg. Research Analysts observe that the MCX Gold June contract started on a lower side. Consequently, there was a noticeable weakness in gold via ETF trends.
Therefore, the current trends suggest that the sentiment is expected to stay bearish
In international markets, gold stooped lower, worn out by the stronger US dollar and higher Treasury yields. Gold fell 0.4% to two-week lows of $1,704.90 an ounce. Hope for a fast economic revival as vaccination gains drive elevated the greenback’s safe appeal.
Additionally, the unease regarding the possible fallout of a hedge fund’s default on margin calls also served as a cause.
Experts indicate that gold will probably stay uneven in regard to trends in the US dollar and bond yields. Higher bond yields heighten the opportunity cost of holding on to non-yielding gold.
In August gold prices had reached a record high of Rs. 56,200. To date this year the yellow metal is down around Rs. 5,500 per 10 gram.
US bond yields heightened on hopes that President Biden’s infrastructure format can boost the economy and debt issues. Biden is likely to reveal his infrastructure agenda by tomorrow.
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