New Delhi: Gold prices in India on March 3 drops hugely after reigning the Covid-hit market with a sharp ₹11,000 fall from August highs of ₹56,200.
On MCX, gold futures were down 0.6% to ₹45283 per 10 gram, their sixth day of decline in previous seven days. Silver futures were down 0.3% at ₹69000 per kg. Gold is in a sideways trend and MCX gold faces resistance at ₹45600-45800 levels, as per a market advisor.
In global markets, gold prices edged lowered on Wednesday as firm US Treasury yields exerted pressure on non-yielding bullion. Spot gold eased 0.2% at $1,734.16 per ounce. Benchmark U.S. Treasury yields after a sharp fall last week held near 1.4% levels, making non-interest paying gold unattractive to investors.
“A rally in global equities on economic optimism and strengthening of US dollar continue to hit the safe-haven status of gold and thus the price of the commodity. Meanwhile, hopes of fiscal stimulus measures from the U.S offer lower-level support to the metal,” said a market expert.
“Sentiment will continue to be on the lower side as long as it stays below the support of $1760. However, a direct turn above $1820 is required to negate the view and take prices higher,” he added.
Among other precious metals, silver dipped 0.3% to $26.67 an ounce, while palladium climbed 0.6% at $2,376.50. Platinum shed 0.3% to $1,200.50.
“The US and global bond yields have risen sharply in last few days and while central banks have played down higher yields as reflection of economic optimism, market players are worried about inflation and rising borrowing costs. The US 10-year bond yield hit a Feb.2020 high of near 1.61% last week but has steadied near 1.4% currently,” Kotak Securities claimed in a note.
Meanwhile, the Senate will begin debate over the $1.9 trillion US stimulus bill, which was passed by the House of Representatives last week.
Asian stocks were also steady on Wednesday after an overnight retreat on Wall Street amid concerns about excessive investor optimism.
In India, the issue price for sovereign gold bonds has been fixed at ₹4,662 per gram and will be closed on March 5. While issue price for the investors applying online and making payment online will have to pay ₹4,612 after getting a discount of ₹50 per gram.