Both gold and silver touched their peaks in August last year on the back of uncertainty due to the Covid-19 pandemic.(HT File Photo)
Both gold and silver touched their peaks in August last year on the back of uncertainty due to the Covid-19 pandemic.(HT File Photo)

Gold starts week slightly higher at 46,640, silver falls by 65

Gold price is down by 10,000, as it rocketed to 56,200 per 10 gram in August 2020.
By hindustantimes.com | Edited by Deepali Sharma, Hindustan Times, New Delhi
UPDATED ON APR 12, 2021 11:08 AM IST

Gold continued the last week’s rally on Monday with a rise of 0.1 per cent or 47 to trade at 46,640 per 10 gram on the Multi Commodity Exchange (MCX). Silver may futures traded low by 65 or 0.1 per cent at 66,918 per kg.

In the previous session, gold closed at 46,593 per 10 gram and silver closed at 66,983 per kg. Both gold and silver touched their peaks in August last year on the back of uncertainty due to the Covid-19 pandemic. Gold price is down by 10,000, as it rocketed to 56,200 per 10 gram in August 2020. Similarly, silver in 2021 is witnessing a fall of more than 10,000, as it was trading at 77,800 per kg in 2020.

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However, the price of the precious metal started the week in green as opposed to the beginning of the previous week when it edged lower at over 45,000 per 10 gram on the MCX.

In the international market, weighed down by the rising US Treasury yields, the prices of yellow metal dropped on Monday. Spot gold fell 0.3 per cent to $1,738.12 per ounce and silver fell 0.4 per cent to $25.13, as per Reuters.

"Stronger-than-expected data suggests that inflation (will be) picking up faster-than-expected in months to come, which is leading to a rise in real yields, exerting pressure on gold," said Margaret Yang, a strategist at DailyFX, according to Reuters.

Investors usually see the bullion as a hedge against inflation, but surging Treasury yields lower the appeal of the non-interest-bearing asset.

A firm dollar also reduced the appeal of the gold for the investors. The dollar index rose by 0.1 per cent against other currencies, making gold expensive.

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