Gold declined to Rs 46,750 per 10 gm on Friday, while Silver price was trending at Rs 70,200 per kg, according to the Good Returns website.
Gold price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold dropped by Rs 350 to Rs 45,550 per 10 gm, while in Chennai it slipped by Rs 450 to Rs 43,720. In Mumbai, the rate decreased to Rs 45,750 according to the website. The price of 24-carat gold in Chennai also plunged by Rs 460 to retail at Rs 47,710 per 10 gm.
In the international market, Gold
Spot gold fell 0.6 per cent to $1,792.81 per ounce by 0757 GMT. US gold futures eased 0.4 per cent to $1,791.60.
“Rising longer dated yields are a primary weighing factor on the precious metals,” DailyFX strategist Margaret Yang said, adding that reflation hopes could push yields even higher.
Benchmark US Treasury yields held close to a one-year peak hit in the previous session, increasing the opportunity cost of holding gold, which pays no interest.
A $1.9 trillion US coronavirus relief aid that is expected to be passed later this week remains in focus.
“The primary trend for gold is downward biased but some short-term rebound is still possible if the US Covid-19 relief bill is approved by the Congress by Friday,” Yang said, adding the medium-term outlook remained bearish.
Fed Chairman Jerome Powell’s reiteration of keeping monetary policy unchanged until the economy was back to full employment and a weaker dollar helped limit gold’s losses.
Reflecting investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold
“Investor demand for gold has been distracted by moves in other alternative asset classes,” ANZ analysts said in a note.
“We expect gold prices will trade sideways for the next quarter or so as the bond selloff continues and investors play the reflation trade through risky asset classes. But gold’s time in the sun is not over.”
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