Gold prices today fall again, crash ₹2,300 in 2 days; silver rates tumble2 min read . Updated: 11 Jan 2021, 10:41 AM IST
- A surge in US Treasury yields, rebound in dollar and the rally in global equities has dampened the safe-haven appeal of gold
- The Indian government's sovereign gold bond issue opens for subscription today
Gold and silver prices in India continued their downtrend today, tracking a decline in global rates. On MCX, February gold futures fell 0.42% to ₹48,760 per 10 gram, extending losses to ₹2,350 in just two days. Silver futures on MCX declined 0.5% to ₹63,914 per kg. In the previous session, gold had tumbled ₹2,050 per 10 gram while silver had tanked ₹6,100 per kg.
"MCX gold may continue to trade with bearish bias where bullion may test ₹48,500 and facing resistance near 49100 while silver may trade with higher volatility where it may test ₹63600," SMC Global said in a note.
In global markets, gold prices continued their slide amid a stronger dollar, a rise in US bond yields and firm equities. Spot gold fell 0.7% to $1,836.30 an ounce, after sinking 3.4% on Friday. Among other precious metals, silver declined 2.4%, while platinum shed 2.3%.
After a posting about 25% gains last year, gold prices have swung wildly since the start of the year. A surge in US Treasury yields in expectation of a big stimulus package by the incoming Joe Biden administration has dampened the appeal of the non-interest bearing assets like gold. Also weighing on gold is a rebound in US dollar and the rally in global equities.
Joe Biden has said that he will later this week outline proposals this week for trillions of dollars in fiscal support to fight the economic toll of surging virus cases.
Analysts say stocks and US treasury yields have climbed on expectations of a global recovery driven by stimulus, lifting the demand for the dollar.
Meanwhile, in India, gold ETFs continued to draw investors, seeing a net inflow of ₹430 crore in December and taking the overall assets under management to ₹14,173 crore. For the year as a whole, in 2020, investors infused a whopping ₹6,657 crore in gold ETFs as compared to a net inflow of just ₹16 crore was seen in the entire 2019.
Also, the government's sovereign gold bond issue opens for subscription today. The issue price for the Sovereign Gold Bond has been fixed at ₹5,104 per gram of gold. A discount of ₹50 per gram is available for investors applying online and the payment against the application is made through digital mode. The Sovereign Gold Bond Scheme 2020-21 Series X will close on January 15, 2021.
The issue price for the previous tranche of gold bonds (Series IX), which were open for subscription from December 28, 2020, to January 1, 2021, was ₹5,000 per gram of gold. (With Agency Inputs)