Gold price slips to Rs 46,690 per 10 gm, silver trending at Rs 69,600 a kg

Gold price on Thursday slipped to Rs 46,690 from Rs 47,230, while silver price fell by Rs 600 to trend at Rs 69,600 per kg, according to the Good Returns website.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to differing excise duty, state taxes, and making changes in different states.

In New Delhi, the price of 22-carat gold fell by Rs 500 to Rs 45,900 per 10 gm, while in Chennai it inched down to Rs 43,940. In Mumbai, the rate decreased to Rs 45,690, according to the Good Returns website. The price of 24-carat gold in Chennai was down by Rs 760 to Rs 47,940 per 10 gm.

In the international market, Gold extended its slide to a fifth session on Wednesday, dipping to its lowest in more than two months as bets for an economic recovery boosted the dollar and benchmark US Treasury yields.

Spot gold was down 1.2 per cent at $1,773.72 per ounce by 02:16 p.m. EST (1916 GMT), having hit its lowest since Nov. 30 at $1,768.60 earlier.

US gold futures settled down 1.5 per cent at $1,772.80. “The US economy is expected to slowly recover,” said David Meger, director of metals trading at High Ridge Futures.

Optimism over gaining the upper hand over the coronavirus is being shown in a slightly firmer dollar and in the 10-year yields, which rose to their highest since February 2020, Meger added.

Growing optimism for a $1.9 trillion US stimulus plan and rising inflation expectations pushed up benchmark Treasury yields, which in turn lifted the dollar to a more than one-week peak.

Breakeven inflation, a measure of expected inflation, is at its highest since August 2014 at 2.2 per cent.

While gold is considered an inflation hedge likely spurred by widespread stimulus, higher yields have challenged that status since they increase the opportunity cost of holding non-yielding gold.

But gold could come back into favour once other currencies start to outperform the dollar later this year, said OANDA analyst Craig Erlam.

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

Source link