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