Gold price slightly up, trades at ₹44,526; silver rises by ₹900
Gold traded marginally higher on Tuesday after closing lower in the previous session. Gold futures on the Multi Commodity Exchange (MCX) rose by ₹308 or 0.7 per cent to ₹44,526 per 10 gram after it had closed at ₹44,218 per 10 gram in the previous session. Silver futures also shined on Tuesday with a rise of ₹906 or 1.38 per cent to reach ₹66,758 per kg. Silver had closed at ₹65,852 per kg in the previous session.
The slight recovery for the precious metals comes after the rates declined by more than ₹10,000 from the previous year. Gold touched its peak on August 7, 2020, when it traded at ₹56,200 per 10 gram, while silver was at ₹77,800 per kg during the same time.
The international market too witnessed a rise in the rate of spot gold that increased by 0.7 per cent to $1,692.21 per ounce. On Monday, prices had fallen more than 1 per cent to the lowest since June 2020 of $1,676.10. US Gold futures also rose 0.7 per cent to $1,690.30, as per Reuters.
"Dip buyers have emerged after the 1.15% fall overnight and US bond yields have slightly eased, which has provided support for precious metals," Reuters quoted OANDA senior market analyst Jeffrey Halley as saying.
This rise in the prices of the metals comes as the rising 10 year US treasury yields declined. The lower edging of the yields increased the opportunity cost of holding them making gold more attractive. The rising yields on the back of the investors' optimism for global economic recovery have been making the non-interest bearing asset seem unattractive.
On the rise of the bullion prices, Reuters quoted Lachlan Shaw, National Australia Bank's head of commodity research as saying, "In an environment of rising US yields, growth recovery, vaccine rollouts, and investors getting more optimistic on growth prospects; demand for safe havens will struggle."
On Tuesday, the largest cryptocurrency in the world, Bitcoin neared $54,000 level which is the highest in two weeks. The bitcoin rallied high due to the increased institutional interest.