Gold Prices In Global Markets And India Continue To Fall

Gold prices in the global markets continued to drop, as US treasury yields continued to move higher. In India gold prices were retailing at Rs 45,310 per 10 grams for 22 karats in Mumbai, while they were at Rs 43,000 per 10 grams for 22 karats in south Indian cities of Tamil Nadu and Bengaluru.

According to Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services "Gold prices fell to their lowest in nearly three months and headed for their worst week since end-November, as recent strength in U.S. Treasury yields dented the non-yielding metal's appeal. Benchmark U.S. Treasury yields edged higher, having hit a near one-year peak earlier in the week. All updates regarding the Covid-19 stimulus bill and vaccine for Covid-19 and the new variant is impacting the market sentiment. On data front, U.S. jobless claims unexpectedly increased last week, raising the possibility of a second straight month of tepid job growth despite declining new COVID-19 infections. Market participants will keep an eye on the preliminary Manufacturing and Service PMI data expected from major economies later in the day. Broader range on COMEX could be between $1755- 1782 and on the domestic front prices could hover in the range of Rs 45,700- 46,300."

Precious metal rates may continue to fall given the sharp recovery in economic activity and a slowdown in Covid 19 infections.