Gold Price Today, 21 February 2021: Price of gold in India has fallen Rs 4,000 per 10 gram in less than two months in 2021 as the price settled flat Rs 46,190 for 10 grams of 24-carat gold on Friday’s Multi-Commodity Exchange (MCX). Gold price this week itself dropped by 2.3 per cent, while compared to last year’s all-time high of Rs 56,200, the price of gold is down by Rs 10,000 per 10 grams.Also Read - Gold Price Today, 17 December 2021: Gold Price Up Rs 1000. Check Revised Rates In Your City
Meanwhile, March silver futures were down Rs 175 or 0.2 per cent at Rs 69,197 on Friday. Also Read - Gold Price Today, 12 December 2021: Gold Price Down Rs 600. Check Revised Rates In Your City
A Bloomberg report quoted by Livemint stated that gold futures’ start to this year has been the worst since 1991. Also Read - Gold Price Today, 4 December 2021: Gold Price Down ₹1,300 Despite Omicron Fears. Check Revised Rates in Your City
5 reasons behind the decline of gold price:
1. According to Kotak Securities, gold prices took a serious hit under pressure by market players assessing the implication of higher bond yields. Higher inflation expectations have pushed yields up, increasing the opportunity cost of holding non-yielding bullion, Livemint wrote.
2. Benchmark US Treasury yields increased nearly to a one-year high, souring yellow metal’s appeal. Gold futures on Comex settled at $1,777 per ounce. With higher yields, the economic outlook appears to be improving leading to increased inflation and interest rate hike expectations.
3. Further, weaker investor interest from exchange-traded fund (ETF) outflows is another reason for the fall in gold price. ETF purchases were a key driver of gold’s rally to a record in August and could further pressure prices if outflows are sustained, the Livemint report stated.
4. Another reason, as noted by Kotak Securities is the increasing debate on Bitcoins as digital gold becomes popular day by day. “Gold remains under incessant selling pressure while Bitcoin surged to a fresh record high level earlier this week,” Kotak Securities stated.
5. Meanwhile, Nish Bhatt, Founder & CEO, Millwood Kane International, said that US Treasury yield and a stronger dollar, optimism of a larger economic stimulus package, and the vaccination drive are together to blame for the downward trend of gold price. “The yellow metal has also lost investor’s interest as the vaccination drive picks up pace and going forward, risk of a second wave of cases, easy liquidity, and global economic recovery will guide gold prices,” he said.