Gold price falls today, silver becomes cheaper by near Rs 500 per kg

 Gold price falls today, silver becomes cheaper by near Rs 500 per kg

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MUMBAI

Gold, silver prices fell on March 12 tracking muted action in the international market. On the Multi-Commodity Exchange (MCX), April gold futures were trading 0.42% or Rs 188 lower at Rs 44,690 as of 11:29 am. May silver futures, were down Rs 415 or 0.61% at Rs 67,130 per kg. Silver futures made an intraday low of Rs 67,000 today.

On Thursday, bullion prices rebounded in the international market as dollar weakened after US President Joe Bidden signed a $1.9-trillion stimulus bill. However, gold could not sustain gains and bond prices fell and equity markets rose. Spot gold on Thursday closed flat at $1720 an ounce. Spot gold prices were down 0.55% at $1,713 per ounce. Spot silver price was down 1.32% at $25.840 per ounce.

Worth mentioning here is that spot price of the yellow metal had slumped to a nine-month low on Monday, but a pullback in Treasury yields helped spark a rebound that has put gold on track for a weekly gain of 1%.

“It’s basically a function of elevated yields and although yields aren’t marching higher, the problem is they’re not going lower, and that presents a problem,” said Stephen Innes, chief global market strategist at financial services firm Axi as saying.

“Gold’s going to hold around $1,700 … unless we break new ground on higher yields.”

Benchmark U.S. Treasury yields climbed, increasing the opportunity cost of holding gold, while the dollar bounced back from a near one-week low.

Investors are now awaiting the U.S. Federal Reserve meeting next week for direction on its monetary policy.

Agencies

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