Gold prices rise today but still down over ₹11000 from record highs, silver rates up2 min read . Updated: 11 Mar 2021, 05:18 PM IST
- Gold's movements have recently been dictated by the dollar and US bond yields.
Gold and silver prices moved higher today in Indian markets, tracking strong global cues. On MCX, gold futures advanced 0.64% to ₹45,077 per 10 gram while silver advanced 0.74% to ₹67,973 per kg. Trading on MCX was closed during the first half due to a public holiday. In global markets, gold prices edged higher today, extending gains to the third day as softer inflation data in the US put pressure on the Treasury yields and the dollar index.
Spot gold were up 0.7% at one-week high of $1,738.08 per ounce. US 10-year Treasury yields hovered near one-week low, as data released on Wednesday showed US core consumer price growth slowed slightly in February. Also, on Wednesday. the $1.9 trillion US COVID-19 relief bill was finally approved by lawmakers.
Gold's movements have recently been dictated by the dollar and bond yields. Though gold is considered as a hedge against inflation from widespread stimulus, higher bond yields increase the opportunity cost of holding non-yielding bullion. Gold prices in India had hit a record high of ₹56,200 in August last year and since then they have been under pressure.
Among other precious metals, silver rose 0.8% to $26.38 an ounce. Gold traders await the outcome of a European Central Bank meeting due later in the day.
"US Treasury yields dropped overnight, pulling back from a recent 13-month high as investors bought back bonds in a selloff that some market participants have deemed overextended. Comex gold has rebounded from a crucial support near $1,680. We continue to stay positive on the yellow metal since jewellery buying to emerge around current levels," said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers on Gold.
Meanwhile, in India, the IPO of Kalyan Jewellers India opens next week as the economy recovers from the pandemic-induced recession. The price band of the ₹1175 crore IPO has been fixed at ₹86 to ₹87 per equity share and the offer will remain open from March 16, 2021 to March 18, 2021. Post listing, Kalyan Jewellers will compete with some of the biggest listed rivals in India such as Tata Group’s Titan Co., Tribhovandas Bhimji Zaveri Ltd. and PC Jeweller Ltd.
Taking advantage of the sharp drop in gold prices this year, investors in India pumped ₹491 crore in gold ETFs or exchange traded funds in February. This came following a net investment of ₹625 crore in January and ₹431 crore in December. (With Agency Inputs)
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