The gold as well as silver prices today edged very less in Indian markets after the strong surge in the previous few sessions. Gold futures fell 0.12 per-cent to ₹47,200 per 10 gram in their 5th fall in 6 sessions. The silver futures edged 0.2 per-cent, very less to ₹68,593 per kg.
In the previous session, we could notice that the gold had surged 1.2% while silver had also jumped 2.8% at that time. The gold prices have been more volatile this year after hitting a record high of ₹56,200 in August the last year I.e, 2020.
The global gold prices have also swung wildly this year and that always depends on the movement of US bond yields as well as the dollar exchange rates. Import duty cut by the Indian government in the recent budget has also impacted the domestic gold price in India.
After the cut in import duty and then all the domestic gold prices came down while internationally the gold also declined due to a rise in the dollar index as well as higher US yield. In the whole of markets the gold prices today remained steady. Futures ticked up after this gauge hit the record last Friday.
Gold’s gains, yields on the benchmark 10-year US Treasury note crept very high to around 1.17 per-cent. The higher yields increase the opportunity cost of holding a non-yielding bullion. During this course of the last week, we can note that the gold prices have also dropped quite a bit, slicing through the 50 week EMA as well as hitting as low as $1786.
If the rate of interest in the US continues to climb then that will be very bad for the gold in the market, as this tends to move in the opposite direction. On the other side, the weaker-than-expected US jobs data released this Friday has reinforced the fragility of the recovery as the last covid-19 pandemic.