Gold and silver prices in India continued to decline today, following a sharp decline in world prices. For the MCX, in February gold futures fell 0.42% to, 48,760 by 10 grams, increasing losses to ₹ 2,350 in just two days. Silver futures on MCX dropped by 0.5% to, 63,914 per kg. In the previous period, gold had dropped to ₹ 2,050 per 10 grams while silver had dropped to ₹ 6,100 per kg.
MCX gold could very well continue doing trade in the bearish bias where the bullion could test 500,500 48,500 and face resistance near 49100 while the silver could trade at higher volatility where it could test 600 63600, as per SMC Global statement. In global markets, gold prices continue to slide between the strong dollar, rising US bond yields and strong stocks. Spot gold fell 0.7% to $ 1,836.30 per ounce, after falling 3.4% on Friday. Among other precious metals, silver fell by 2.4%, and platinum dropped by 2.3%.
After about 25% shipping last year, gold prices have risen sharply since the beginning of the year. The outflow of funds from the U.S. Treasury Department reveals anticipation of a large package of incentives for Joe Biden’s incoming management has reduced the appeal of non-profit assets such as gold. Another heavyweight of gold is a return to the US dollar and a rally to international rates. Joe Biden said earlier this week he would be launching a multi-billion dollar fundraising proposal this week to fight the virus. Analysts say stocks and yields for US stocks have risen in anticipation of a global recovery driven by the stimulus, raising the demand for the dollar. Meanwhile, in India, gold ETFs continued to attract investors, seeing a total inflow of ₹ 430 crore in December and taking all assets under management to 14,173 crore. Annually, by 2020, investors are investing 6,657 crore in gold ETFs compared to the total cr 16 crore inflation seen throughout 2019.
Also, the issuance of private state-owned enterprises opens up registration today. The price of Curver Gold Bond is set at ₹ 5,104 per gram of gold. A discount of ₹ 50 per gram is available to online investors and transactional payments are made in digital mode. The Coren Gold Bond Scheme 2020-21 Series X will close on January 15, 2021.
The price of issuing the previous half of the gold bonds (Series IX), which was open for registration from December 28, 2020, to January 1, 2021, was ₹ 5,000 per gram of gold.