After slumping by Rs. 2000 in a day, gold prices continue with their weakening trend. This is in line with the international pricing on the back of gains in the dollar and on elevated levels of yield which reduces the appeal of non-interest yielding yellow precious metal.
Gold prices in the year gone by hit a record high of Rs. 56200 on the MCX on a per 10 gm basis, while in the international market it strengthened above $2000 per ounce.
On Monday, the price of gold again inched lower by 0.2 percent in the spot market to levels of $1884.5 per ounce. Yields came in on the higher side as there are expectations that more federal spending would help the virus-battered economy. For the first time in eight months, there is reported a decline in employment in the US on the back of Covid 19 infection.
And amid such a situation, US President-elect Biden said that the US nationals need relief right away and taking action now will help the economy even with deficit financing.
Also, there is a news that amid the pandemic and weakness in dollar, investors surpluses got diverted to gold as investment into gold ETFs worth Rs. 6657 crore.