Gold prices today fall for 5th time in 6 days

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Gold Price

Gold and silver prices today edged lower in Indian markets after a strong surge in the previous session. On MCX, gold futures fell 0.12% to ₹47,200 per 10 gram in their fifth fall in six sessions. Silver futures edged 0.2% lower to ₹68,593 per kg. In the previous session, gold had surged 1.2% while silver had jumped 2.8%. Gold prices have been very volatile this year after hitting a record high of ₹56,200 in August last year.

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Global gold prices have also swung wildly this year, depending on the movement of US bond yields and the dollar. In addition, import duty cut by the Indian government in recent budget has also impacted domestic gold price.

In global markets, gold prices today remained steady at $1,811.80 an ounce as equities rose to a new high. S&P 500 Index futures ticked up after the gauge hit a record on Friday while Asian markets were firm today.

Capping gold’s gains, yields on the benchmark 10-year US Treasury note crept higher to around 1.17%. Higher yields increase the opportunity cost of holding non-yielding bullion.

Continued rollout of vaccines and data suggesting a declining trend in infections in some countries buoyed the risk appetite.

“During the course of the previous week, gold prices have dropped quite a bit, slicing through the 50 week EMA and hitting as low as $1786. Having said all that, this is an area that I think shows hope of support, but it was an ugly week. We guess we ought to pay heed to the US dollar and the interest rates coming out of the US, of course. If interest rates in the US continue to climb, that will be very bad for gold, as it tends to move in the opposite direction,” said Kshitij Purohit of Capital Via Investment Advisors.

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