Gold rose by Rs 10 to Rs 44,520 per 10 gm on Monday, while Silver price trended at Rs 65,700 per kg, according to the Good Returns website.
In New Delhi, the price of 22-carat gold inched up by Rs 10 to Rs 43,860 per 10 gm, while in Chennai it increased by Rs 10 to Rs 42,170. In Mumbai, the rate rose to Rs 43,520, according to the website. The price of 24-carat gold in Chennai was at Rs 46,000 per 10 gm.
Gold varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
Spot gold was little changed at $1,699.30 by 01:45 p.m. ET (1845 GMT), after falling to its lowest since June 8 at $1,686.40 in the session. It has fallen nearly 2 per cent this week.
US gold futures settled 0.1 per cent lower at $1,698.50. “This optimism in regards to the economy moving forward continues to drive bond yields higher and that certainly has been taking the wind out of the sails of many commodity markets, including gold,” said David Meger, director of metals trading at High Ridge Futures.
Data showed US jobs increased more than expected in February, raising hopes around a quick economic rebound driven by massive fiscal stimulus and vaccination drives.
The strong economic data lifted benchmark 10-year Treasury yields to their highest since February 2020, while the dollar also jumped.
US Federal Reserve Chair Jerome Powell on Thursday repeated his pledge to keep credit loose and flowing until Americans are back at work.
His comments disappointed gold investors who expected him to act on the recent surge in the US 10-year Treasury yield, which has sent bullion below $1,700 per ounce.
“The gold market is giving back the pandemic gains. The drop below $1,700/oz leaves the market looking fragile,” HSBC analysts said in a note.
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