Gold rates in Indian cities dipped today as international prices dropped. Spot gold for 22 karats was at Rs 47,500 per 10 grams in Bengaluru. Chennai and Delhi too saw lower rates for both 22 karats and 24 karats.
Gold in the international markets dropped more than 2% on Wednesday, hit by a rebound in the dollar. According to a Reuters report, treasury yields surged, with investors betting on a Democrat win in the U.S. Senate runoff elections in Georgia.
Spot gold was down 2.0% at $1,907 an ounce, while US gold futures was down almost 2.03 per cent.
"Higher (bond) yields have boosted the dollar and triggered a selloff in gold that accelerated with stops under $1,935-40," said Tai Wong, head of base and precious metals derivatives trading at BMO.
Gold has had a very tepid start to the year after having a solid run in 2020. Analysts believe that the precious metal may continue to trade in a range. For the last few months gold has been very steady and investors are not betting on runaway prices.
Gold jewellers are of the opinion that prices may remain steady, though a sharp fall is not expected. Every drop in prices of the precious metal may result in buying opportunities.
Also, investors are betting on more fiscal stimulus measures in the US, which could support gold prices. Investors who are on the sidelines may want to buy on dips.