Gold price dips to Rs 46,750 per 10 gm, silver declines to Rs 70,200 a kg

The price of 24-carat gold in Chennai also plunged by Rs 460 to retail at Rs 47,710 per 10 gm
Gold price declined to Rs 46,750 per 10 gm on Friday, while Silver price was trending at Rs 70,200 per kg, according to the Good Returns website.

Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.

In New Delhi, the price of 22-carat gold dropped by Rs 350 to Rs 45,550 per 10 gm, while in Chennai it slipped by Rs 450 to Rs 43,720. In Mumbai, the rate decreased to Rs 45,750 according to the website. The price of 24-carat gold in Chennai also plunged by Rs 460 to retail at Rs 47,710 per 10 gm.  

In the international market, Gold eased on Thursday as US Treasury yields hovered near a one-year high, tarnishing bullion's appeal, although a softer dollar and the US Federal Reserve's commitment to an accommodative policy limited its fall.

Spot gold fell 0.6 per cent to $1,792.81 per ounce by 0757 GMT. US gold futures eased 0.4 per cent to $1,791.60.

"Rising longer dated yields are a primary weighing factor on the precious metals," DailyFX strategist Margaret Yang said, adding that reflation hopes could push yields even higher.

Benchmark US Treasury yields held close to a one-year peak hit in the previous session, increasing the opportunity cost of holding gold, which pays no interest.

A $1.9 trillion US coronavirus relief aid that is expected to be passed later this week remains in focus.

"The primary trend for gold is downward biased but some short-term rebound is still possible if the US Covid-19 relief bill is approved by the Congress by Friday," Yang said, adding the medium-term outlook remained bearish.

Fed Chairman Jerome Powell's reiteration of keeping monetary policy unchanged until the economy was back to full employment and a weaker dollar helped limit gold's losses.

Reflecting investor sentiment, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since May 2020 on Wednesday.

"Investor demand for gold has been distracted by moves in other alternative asset classes," ANZ analysts said in a note.

"We expect gold prices will trade sideways for the next quarter or so as the bond selloff continues and investors play the reflation trade through risky asset classes. But gold's time in the sun is not over."


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel