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Gold prices remain steady, other metals advance
The price of gold in the international market also remained soft with spot gold declining 0.1 per cent to $1,823.25 an ounce.
With more and more people getting vaccinated and cases of the coronavirus disease (Covid-19) declining, the prices of precious metals remained steady.
On Multi Commodity Exchange (MCX), gold futures rose 0.15 per cent or ₹71 to ₹47,389 per 10 gram and silver futures gained 1.02 per cent or ₹702 to ₹69,819 per kg. However, gold is down by over ₹9,000 from record highs of ₹56,200 in August last year.
The yellow metal had closed at ₹47,318 per 10 gram in the previous session. In the previous two sessions, gold lost around ₹800 per 10 gram, as reported by The Mint.
The bullion has been witnessing slow growth since the beginning of the year with the change in the US administration, high performing 10-year US Treasury yields and optimism in the market pertaining to coronavirus vaccination drives around the world. The opportunity cost of non-yielding assets like gold rises when the bond yields hike, thereby losing attraction.
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The metal had retracted 4 per cent this year, as reported by Bloomberg.
The price of gold in the international market also remained soft with spot gold declining 0.1 per cent to $1,823.25 an ounce. While the bullion sees decline, other metals advanced. silver and palladium rose, platinum saw a six-year hike of 1.4 per cent to $1,274.02 an ounce.
Gold “will likely find some support from a weaker dollar in 2021," Bloomberg quoted Vivek Dhar, analyst at Commonwealth Bank of Australia as saying. “We expect the precious metal to largely remain range-bound between $1,800 and $1,900 in coming months as rising US 10‑year bond yields are offset by rising US 10-year inflation expectations and a weaker US dollar," he added.
As gold is the safe haven, the bets on Covid-19 stimulus being inflationary will help the metal regain in addition to the weight of recovery on the dollar.
