Gold price close lower at ₹44,715, silver also fell by over ₹700
In the previous session, the yellow metal had closed at ₹44,860 per 10 gram and silver had closed at ₹65,245 per kg.
The precious metals have plummeted by around ₹12,000 from their previous year peaks. The safe haven of assets in the face of uncertainty were trading as high as ₹56,200 per 10 gram in August 2020. Silver too had skyrocketed to ₹77,800 per kg in August last year as the pandemic unleashed global economic turmoil.
In the international market, the bullion slid at $1,773 per ounce and silver was flat at $24.97 per ounce.
“Gold prices traded steady with spot gold prices at COMEX (New York-based commodities exchange) trading near USD 1,733 per ounce on Thursday,” the news agency PTI quoted HDFC Securities Senior Analyst (Commodities) Tapan Patel as saying.
A strong dollar subdued the gains from the lower bond yields edging the metal lower on Thursday. The rise in the currency increased the opportunity cost of holding the non interest bearing asset as the dollar rose to its four months high.
“Bullion could see further upside traction if US bond yields stay sluggish, especially in this risk-averse environment with US-Sino tension starting to bubble again," Reuters quoted Stephen Innes, chief global market strategist at financial services firm Axi as saying.
The financial markets sentiments remained low, as reported by Reuters, as the new wave of coronavirus infections across the world, especially in Europe increased the risk of lockdown. The risk of increased restrictions due in wake of the upsurge in Covid-19 and potential US tax hikes changed the outlook towards economic recovery which has been positive upto a month before.