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Home >Markets >Commodities >Gold prices today fall sharply to one-year lows, silver rates drop

Gold and silver prices today slumped in Indian markets, tracking weak global cues. On MCX, April gold futures were down 1.8% to one-year low levels of 43,805 per 10 gram while silver futures were down 1.2% to 64,060 per kg. Trading on MCX was closed during the first half due to a public holiday. Gold prices are now down about 12,500 from August record levels of 56,200 and 6,000 from the start of this year.

In global markets, gold prices also fell sharply amid a firm US dollar and rising US Treasury yields. Spot gold was down 1.3% at $1,708.79 per ounce. Analysts say that rebound in US dollar and elevated yields dimmed the safe-haven metal's appeal. Higher yields increase opportunity costs of holding the non-yielding bullion.

The dollar index held firm at 92.938, up 0.18%, against its rivals, denting gold's appeal for investors holding other currencies.

Gold traders will be closely watching US President Joe Biden's infrastructure spending package due on Wednesday. Biden will outline details about his proposal to rebuild roads, bridges and other infrastructure.

The refloating of the huge container ship blocking the Suez Canal for nearly a week however raised hopes that the vital waterway could reopen soon and ease global shipping backlogs. European equity markets were mostly higher. On the other hand, US equities were lower today as financial stocks dropped amid worries about how much pain big banks will take following soured trades made by a major US hedge fund.

Yields on US 10-year notes were at 1.696%, but were not far from the recent 13-month top of 1.754%.

Several key reports on the US economy are scheduled for this week, which could be also watched closely by gold traders. Among the headliners is Friday’s jobs report, where economists expect to see a big acceleration in hiring. (With Agency Inputs)

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