Gold down by over ₹9,000 from its 2020 peak
Gold prices in India on Friday fell again as gold futures on the Multi Commodity Index (MCX) traded at ₹47,474 per 10 gram with a drop of 0.1 per cent. Silver futures on MCX rose 0.48 per cent to ₹68,821 per kg.
In the previous session, gold prices for April had slipped by ₹59 or 0.12 per cent to ₹47,954 per 10 gram, as reported by PTI.
The prices of the bullion in the country are down by over ₹9,000 from its last year's peak of ₹56,200.
Gold saw its prices decline in the international market as well. The rate of spot gold fell 0.22 per cent to $1,820.86 per ounce, while US gold futures dipped 0.19 per cent to $1,823.30, as reported by Bloomberg.
The decline in the prices of gold comes in the backdrop of a rise in 10-year US Treasuries yield. The largest cryptocurrency Bitcoin climbed again to a new high after BNY Mellon offered its custodian services for the digital asset, as reported by Bloomberg.
"Gold may continue to reflect the trend in the US dollar with a focus on global virus situation as well as US stimulus and central bank monetary policy stance. However, we are seeing some signs of exhaustion near $1850/ounce level and a small correction can’t be ruled out if the US dollar manages to regain some lost ground," the Mint reported Kotak Securities as saying.
The demand for gold is expected to rise with on the occasion of Lunar New Year in China and the reduction in import duty as per the Budget 2021-22 in India.