A weak week for gold: Here's how the bullion fared
The gold prices have witnessed a diminishing week with the prices falling to record lows in 10 months. The week began with the bullion plummeting by ₹11,409 per 10 gram from its August 2020 highs. Silver had plunged more than ₹10,000 from its last year peak on the first day of March.
On Tuesday, gold was down by more than ₹600 to ₹44,760 per 10 gram. Silver had crashed on the day by ₹1,847 to be at ₹67,073 per kg. An easing US Treasury yields had edged the gold prices in the international market on the day.
The US Treasury Yields operating at a one-year-high is the major reason for the fall of the precious metal prices, including the growing optimism in the market for global recovery. The high yields increase the opportunity cost of holding gold, a non-interest-bearing asset.
"The market is consolidating itself around what is likely to be some pretty healthy robust economic growth and inflation-related readings out of the economy for the balance of 2021," Reuters quoted Jeff MacDonald, Head of Fixed-Income Strategies, Fiduciary Trust International in New York as saying on the performance of markets on Friday.
On Wednesday, while the metal saw a decline on MCX (Multi Commodity Exchange), there was a rise in the metal price in comparison to its previous day rate. The yellow metal traded at ₹45,304 per 10 gram on the day.
On Thursday, gold plummeted again and reached ₹44, 748 per 10 gram. Silver too had declined to ₹66, 104 per kg on the day. The bullion rates declined by over ₹12,000 on the day from its August high of ₹56,200 per 10 gram.
On Friday, the precious metal fell further to record ₹44, 344 per 10 gram. Silver futures on MCX also fell to ₹65, 371 per kg. The decline in silver was of more than ₹12,000 from its peak of ₹77,800 per kg last year in the month of August.
The continuous fall in the prices of gold allured Indian consumers to purchase more gold in physical form.