Gold price slips to Rs 44,900 per 10 gm, silver trending at Rs 66,200/kg

In Mumbai, the rate fell to Rs 43,900, according to the website
Gold price plummeted by Rs 470 to Rs 44,900 per 10 gm on Friday, while Silver price slipped by Rs 1,700 to trend at Rs 66,200 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 slipped by Rs 650 to Rs 43,950 per 10 gm, while in Chennai it inched down by Rs 470 to Rs 42,170. In Mumbai, the rate fell to Rs 43,900, according to the website. The price of 24-carat gold in Chennai also decreased by Rs 500 to retail at Rs 46,020 per 10 gm.  

In the international market, Gold prices rose on Thursday, rebounding from a near nine-month low hit in the previous session, but rising US Treasury yields continued to weigh on non-yielding bullion.

Spot gold rose 0.5 per cent to $1,719.21 per ounce by 0729 GMT, having dropped to its lowest since June 9 at $1,701.40 on Wednesday. US gold futures was up 0.1 per cent to $1,717.50.

"It's just a technical bounce. The broad fundamentals are still on the downside for gold - the dollar reversing, US yields rising have been negative for gold prices," said Hareesh V, head of commodity research at Geojit Financial Services. He said gold's safe-haven appeal had reduced.

Higher US Treasury yields threatened gold's appeal as an inflation hedge as they increase the opportunity cost of holding bullion, which pays no returns, while the dollar rose against rivals.

Investors await Federal Reserve Chairman Jerome Powell's remarks before a virtual Wall Street Journal Jobs Summit at 1705 GMT, on the rapid rise in yields and clues on policy outlook.

The market will need more than "jawboning" if the Fed is serious about keeping interest rates low, "but in the absence of that, it would continue on its own path, which is higher yields and steepening of the yield curve," said Howie Lee, an economist at OCBC Bank.

The US Senate delayed a debate on a $1.9 trillion COVID-19 relief bill until at least Thursday.

Support from inflows in gold exchange traded funds that were a major driver for prices in 2020 also appear to be waning, said Michael Langford, director at corporate advisory AirGuide.

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

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