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Gold prices plunge for fifth consecutive day to lowest level since June
The fall in global rates and soaring US Treasury yields coupled with a firmer dollar led to the fall in the prices of gold on Wednesday.
Gold prices continued to fall for the fifth consecutive day following the decline in prices of the precious metal across world markets. On MCX, April gold futures plunged by 0.27% to ₹46,772 per 10 gram, which were the lowest since June, while silver prices rose to ₹69,535 per kg, according to a report by Hindustan Times sister publication LiveMint.
The fall in global rates and soaring US Treasury yields coupled with a firmer dollar led to the fall in the prices of gold on Wednesday. “Investors are eyeing rising yields, dollar and are hesitant to do any bargain hunting on the precious metals at the moment as yields may go further up in view of reflation hopes and impending stimulus package,” strategist Margaret Yang told news agency Reuters.
Yang also said that in the near-term gold prices may face further pressure.
Spot gold prices plunged as much as 0.4% to $1,786.74 an ounce and if the prices drop furthermore on Wednesday, this could be the worst run gold may be facing since March 2020.
“A runaway rally in global bond yields has delivered a fatal blow to gold,” Edward Moya told Bloomberg on Wednesday.
Along with gold, the Japanese yen also suffered loss due to the rise in US yields.
Indian shares tumbled in early trade as Sensex dropped 300 points in early trade on Wednesday as HDFC, ICICI Bank and TCS recorded losses.
