Sun, 07 Mar 2021 01:03 PM IST
New Delhi | Jagran Business Desk: After witnessing a record gain last year, gold prices have declined nearly 20 per cent amid high bonds yields in the United States of America (USA) and the stock market's instable performance in India. On Multi Commodity Exchange (MCX), gold futures have declined in eight of the past nine trading sessions, reaching its lowest point in the last 10 months.
On the MCX, the April contract of gold futures was at Rs 44,458 per 10 gram, lower by Rs 83 or 0.19 per cent from its previous close. It is Rs 11,742 lower than the record high of Rs 56,200 reached in August last year.
While gold prices are declining, business experts feel that this is a good time to invest in the yellow metal as rates are expected to rise in the future.
Explaining the fall in rates, Nish Bhatt, CEO of Millwood Kane International, said that the fall in gold prices in the domestic market is in line with the international market prices post comments of the US Fed Chairman on inflation and bond yield.
"Comex gold prices fell due to the rising treasury yields that make holding gold more expensive, the strengthening of the dollar also makes gold buying expensive. Heavy outflows from Gold ETFs are also one of the reasons for the softness in gold prices," he said while speaking to news agency IANS.
Bhatt told IANS that the vaccination drive will also help gold rates as normalcy in economic activities returns. "The expectation of a rise in inflation due to excess liquidity globally may help gold prices in the medium to long-term," Bhatt told IANS.
On Friday, gold prices tumbled by Rs 522 to Rs 43,887 per 10 grams in the national capital. The precious metal had closed at Rs 44,409 per 10 grams in the previous trade. In the international market, gold was trading lower at USD 1,696 per ounce and silver was down at USD 25.20 an ounce.