Gold prices decline again to ₹46,430, silver rises by ₹257
Gold prices on Thursday began trading low as gold futures on MCX recorded a decline of ₹92 to ₹46, 430 per 10 gram. Silver futures are up by ₹257 to ₹69, 800 per kg.
Gold had previously closed at ₹46, 522 per 10 gram while silver had closed at ₹69,543 per kg.
In the international market too, gold rates declined for the second consecutive month. Spot gold rate fell 0.5 per cent to $1,796.84 per ounce. The spot gold rate is 2.8 per cent lower in February following a 2.7 per cent drop in January. Platinum that was recording a six-week high a few weeks back, fell with palladium.
The decline in the prices of the yellow metal comes on the back of rising US Treasury yield that decreases the opportunity cost holding the bullion that yields no interest, while the US Treasury bonds are recording an almost a year high.
The bullion that was skyrocketing last year due to the coronavirus pandemic induced economy shutdowns is down by over 5 per cent in 2021. Gold in August 2020 had touched its peak at ₹56,200 per 10 gram, while silver was at ₹77,800 per kg. The gold has plummeted by around ₹10,000 this year with the recovery of the global economy and coronavirus vaccination drives.
"We expect gold prices will trade sideways for the next quarter or so as the bond selloff continues and investors play the reflation trade through risky asset classes,” Bloomberg quoted ANZ commodity strategists Daniel Hynes and Soni Kumari as saying. “But gold’s time in the sun is not over," they added.