Gold prices in India are now down about ₹9,500 from record highs
Fall in global rates and import duty cut in Budget has pushed gold prices lower in Indian markets
Gold prices in India skidded for fifth day in a row, tracking softer global rates. On MCX, April gold futures were down 0.27% to ₹46772 per 10 gram, falling close to its lowest levels since June, while silver futures rose marginally to ₹69,535 per kg. The recent fall in global rates and import duty cut in Budget has pushed gold rates in India to near multi-month lows. In August gold had hit a record high of ₹56,200 per 10 gram.
In global markets, gold prices fell near two-week lows amid a stronger US dollar and hardening of US bond yields. Spot gold was down 0.2% to $1,791.36 per ounce. Silver shed 0.1% to $27.20.
"Weighing on gold price is sharp rise in US and global bond yields which reflects improving economic outlook as well as pickup in inflation expectations," Kotak Securities said in a note, adding that the precious metal has largely taken cues from US dollar.
Also weighing on price is weaker investor interest as is evident from continuing ETF outflows, the brokerage added.
Benchmark 10-year US Treasury yields today rose to their highest level in a year, increasing the opportunity cost of non-yielding gold. The dollar index rebounded 90.660 from a three-week low.
Gold and silver mutual funds and ETFs witnessed the biggest outflows in three months in the week ended February 10 as investors put their money into soaring equities and high-yielding bond markets.
Investors net sold $1.4 billion in precious metal funds in the week ended Feb. 10, according to weekly data available for 338 precious metal funds on Refinitiv Lipper.
World's biggest gold ETF SPDR Gold Shares had net sales of $621 million last week while iShares Silver Trust saw outflows of $919.1 million.
On gold investors radar will be the release of minutes of Federal Reserve's end-January monetary policy meeting.
Among other precious metals, platinum eased 0.2% to $1,258.56 and palladium fell 0.5% to $2,372.45. Platinum, which is used in automobile catalytic converters to limit exhaust emissions, has rallied about 18% this year on hopes of rising demand as a result of greener technologies. (With Agency Inputs)
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