With the fall in the safe haven of investments, the global stocks on Friday were flying high with Japan's Nikkei at more than three-decade high.(Reuters file photo)
With the fall in the safe haven of investments, the global stocks on Friday were flying high with Japan's Nikkei at more than three-decade high.(Reuters file photo)

Gold price falls by 2,000, Silver by 6,000

In New York, gold steeped as much as 4.5 per cent on Friday, the most since November, while silver dropped by 9.8 per cent.
By hindustantimes.com | Edited by Deepali Sharma, Hindustan Times, New Delhi
UPDATED ON JAN 09, 2021 03:19 PM IST

Gold and silver prices on Friday witnessed a sharp fall on the back of a recovery in the dollar and jump in US Treasury yields since March. On Multi Commodity Exchange of India Ltd. (MCX), February gold futures plummeted by 4.1 per cent or 2,086 to 48,818 per 10 gram, while March silver futures dipped by 8.74 per cent or 6,112 to 63,850 per kg.

Since the beginning of the year, the precious metals have been seeing a fall in the prices. US Treasury yields and increasing expectations of a higher economic relief package to be released soon due to the two Democratic victories of the US President-elect Joe Biden in Georgia's Senate runoff this week are among the major factors of the fluctuation in the prices of the metals and the stock market.

In New York, gold steeped as much as 4.5 per cent on Friday, the most since November, while silver dropped by 9.8 per cent.

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With the fall in the safe haven of investments, the global stocks on Friday were flying high with Japan's Nikkei at more than three-decade high, despite the political unrest in the United States after the pro Trump supporters stormed the Capitol .

"The economic reality stands in stark contrast to the markets' view of the world – we are all living in the present, with a badly damaged economy, while the market is living in the future, expecting a post-Covid or at least post-vaccine world," Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, was quoted by Reuters as saying .

The optimism in investors regarding the economic recovery due to the change in administration in the US and the fast roll-out of the Covid vaccines globally seems to have started affecting the bullion.

In India, the tenth tranche of Sovereign Gold Bonds is set to begin from January 11, 2021, and will continue till January 15, 2021. The Reserve Bank of India has fixed the price at 5,104 per gram of gold, with online applicants getting 50 per gram discount for digital transactions.

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