Gold prices in India were only marginally weak in Monday's session at Rs. 44636, down Rs. 47 or 0.11%. This is as there has been progress in the US coronavirus relief bill, which on Saturday was passed by the US Senate and shall be approved by the US Democrat in this week.
In the international market, on positive mood around the US stimulus, the price of gold in international markets is again above $1700 per ounce.
Sharp Rise In Gold Price Not Seen Possible Anytime Soon
Nonetheless sharp rise in gold price shall not be a possibility in the near term. As some of these factors deter any rise:
1. US Treasury yield i.e. at a 1-year high of close to 1.52% and this takes the sheen out of the precious metal gold.
2. There has been excessive outflow from the gold ETFs because of instruments such as bonds gaining ground.
3. Also, prospects of a better rate of economy recovery indicated through rise in China's exports and US non-farm payroll numbers also reduced gold's appeal and hence lowered its price.