In India, gold and silver prices fell today as global cues remained muted. In the Asia Pacific session, gold and silver have fallen overnight. Experts believe that, as a result of this year's extended wedding season, gold manufacturers and retailers are now looking to stockpile inventory. Bullion-backed exchange-traded funds have seen their holdings fall to their lowest level since May.
Gold futures on Multi Commodity Exchange (MCX) were down 0.14% or Rs 65 at Rs 45,353 per 10 grams. Silver futures dipped 0.41% or Rs 268 to Rs 64281 per kg.
The yellow metal is currently trading half a percent lower at $1725/oz, while silver has dropped 0.76% to trade below the psychological $25/oz level.
Since hitting a high of 56,200 in August, gold prices in India have been falling. Gold fell nearly 5,000 per 10 gramme in the first three months of the year.
Gold was steady in global markets today, but its upside was limited by a stronger US dollar and firm US treasury yields. Gold was unchanged at $1,728.60 per ounce on the spot market. According to data released on Friday, the United States created the most jobs in seven months in March, owing to increased vaccinations, fewer business restrictions, and additional pandemic relief funds.
The better-than-expected data fueled inflation fears, but rising bond yields dampened gold's lustre. Gold is commonly thought of as an inflation hedge. Higher bond yields, on the other hand, raise the opportunity cost of owning gold.
Gold traders will also be keeping an eye on the progress of Biden's $2.25 trillion infrastructure plan.