Gold Prices Fall Below Rs. 47000 As Dollar Gets A Boost On Inflation Risk

Gold prices in India in line with movement of rates of gold in international markets are seeing a decline. On the MCX, gold prices are trading lower by Rs. 200 or 0.43% at Rs. 46696 per 10 gm.

Internationally, gold prices have been trending lower in the international markets as dollar hardened amid hardening of yields on the back of rising risk of inflation.
Spot gold was down 0.2% to $1,791.36 per ounce by 0118 GMT, after hitting its lowest since Feb. 4 at $1,785.89 in early trade.

U.S. gold futures slipped 0.6% to $1,788.40. Silver shed 0.1% to $27.20.

Notably, higher yield weighs on gold as it increase the opportunity cost of holding the bullion.

After running up for some 12 days, global shares are muted as there is a doubt over the US pandemic aid which has been prolonged for long.

Meanwhile, there is awaited Federal Reserve's minutes that was held in December end.

Another reason for the drag on the gold prices is there has been seen a huge outflow from Gold ETfs and mutual funds in the week ended February 10.

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