Gold price drops by over ₹12,000 since 2020, currently trading at ₹44,748
The yellow metal on Thursday continued its decline with a fall of ₹200 on the Multi Commodity Exchange (MCX). Gold futures dropped 0.44 per cent to be at ₹44,748 per 10 gram. Silver futures too fell by ₹9 or 0.01 per cent to trade at ₹66,104 per kg.
Gold prices on Thursday have declined by over ₹12,000 per 10 gram from its highest in August 2020. Silver too has fallen by more than ₹10,000 per kg from its record high of ₹77,800 last year.
Gold in the previous session had closed at ₹44,948 per 10 gram and Silver had closed at ₹66,113 per kg.
The rising US Treasury yields continued its trend of pulling down the non-interest-bearing metal. In the international market, however, the price of gold was steady at $1,711.61 per ounce. It had dropped to the lowest on Wednesday since June 9 at $1,701.40. US gold futures recorded a decline of 0.3 per cent to be at $1,710.20.
"In the short term, undeniably gold is on a bearish trend. Most fundamentals are stacked against it: higher yields, dollar that refuses to drop further, recovering economic trajectory, picking up of vaccination rates," Bloomberg quoted Howie Lee, an economist at OCBC Bank, as saying.
As the US Senate delayed the debate on the $1.9 trillion Covid stimulus package that the investors have been eyeing, the holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, dropped to the lowest since May 2020 on Wednesday, Bloomberg reported.
Meanwhile, the 12th tranche of sovereign gold bonds is open for subscription till Friday. The central bank has fixed the issue price of the bonds at ₹4,662 per gram. The bank in collaboration with the government releases the purchase of sovereign gold bonds to encourage people to invest in interest yielding gold in contrast to physical gold for domestic purposes.