Tags: Commodity News, Gold
Gold and Silver

Gold and Silver Prices Declined After a Substantial Rise

Gold and silver prices declined in Indian markets after a substantial rise in the last previous session. On Multi Commodity Exchange, gold futures dropped by 0.12% and settled at Rs 47,200 per 10 gram. Silver futures eased 0.2% and touched Rs 68,593 per kg.

Significantly, in the prior session, gold had increased by 1.2% while silver had risen 2.8%. The yellow metal prices have been very volatile this year after reaching a lifetime high of Rs 56,200 in August 2020.

According to experts, the precious metals may remain volatile. However, investors can look at buying gold on dips towards Rs 47,000 for a target of Rs 47,440.

Global prices of the yellow metal have also fluctuated wildly this year, depending on U.S. bond yields and the greenback movement. Besides, the Indian government’s import duty in the recent budget has also affected the domestic gold price.

Gold prices remained steady at $1,811.80 in global markets

Furthermore, the yellow and white metals increased amid weakness in the U.S. dollar index after a disappointing U.S. non-farm payroll data. According to experts, the data weighed down the dollar index and supported gold and silver.

In international markets, gold prices remained steady at $1,811.80 an ounce as equities increased to a new high. Moreover, S&P 500 Index futures rose after the gauge reached a record on Friday while Asian markets were firm today.

Capping gold’s increases, yields on the benchmark 10-year U.S. Treasury note edged higher to about 1.17%. Higher yields boost the opportunity cost of holding non-yielding bullion.

Comex gold was trading flat near $1,810/oz after a 1.2% surge in the previous session. Additionally, supporting price is boosted expectations of U.S. stimulus measures and mixed U.S. jobs report.

Still, weighing on the price is weaker investor interest, as evident from ETF outflows and the surge in U.S. bond yields. The yellow metal has bounced back to trade over $1,800, but a continued increase is unlikely until the greenback corrects.

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