New Delhi: Gold prices continued their downtrend for the fourth straight day. On the Multi Commodity Exchange (MCX), February gold futures were down 0.42% to Rs 48,760 per 10 gram, extending losses to Rs 2,350 in just two days. Silver futures, on the other hand, fell 0.5% to Rs 63,914 per kg. Meanwhile, Sovereign Gold Bond Scheme 2020-21 – Series X also opened for subscription for the period January 11-15, 2021. The issue price of the gold bond during the subscription period will be Rs 5,104 per gram, RBI said in a press release dated January 08, 2021. Rs 50 per gram discount will also be offered to the investors. Also Read - Gold Price Today January 15, 2021: Yellow Metal Rates Fall Again, Silver Drops | Prices in Various Indian Cities Here
However, the market gold price in several cities showed a decline. Here’ are the gold prices today per 10 gram in some major cities across India. Also Read - On Makar Sankranti, Gold Price Today Sees Sharp Decline, Silver Gains
Check out 22-Carat Gold Prices in Major Cities Also Read - Gold Prices Today January 12, 2021: Yellow Metal Rates Fall Again, Down Almost Rs 7,000 From Record Highs
Ravindra Rao, VP, Head Commodity Research at Kotak Securities said: “Gold and silver have fallen amid steady US dollar index despite disappointing US non-farm payrolls data. The US 10-year bond yield has also risen to March highs reflecting optimism about the US economy and increased inflation expectations.”
He also noted that the progress on the vaccine front as the UK approved Moderna’s mRNA Covid-19 vaccine for emergency use also has weighed on the prices.
“Although the short-term moves remain choppy due to rising bond yields in the US on back of a smooth transition of power, higher future inflationary concerns might trigger a re-emergence of buying in the precious metal at lower levels,” Rao said.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research said that hopes of stimulus in the US have pulled gold prices lower along with the US Treasury yields and bull run in equity markets.
He noted that the recent plunge came as investors pulled money from gold to invest US Treasury yields, which are at new highs of March.
“Hedge fund and some big investors are also exited in the gold position to chase crypto currency which is having marvelous run currently,” Purohit said.