In conformity with global indicators, Gold prices in India reach a 10-month low of Rs 45,283 per 10 gram which is a whopping Rs 11,000 less from the high they had made in August 2020 when value of gold in the country had crossed the Rs 56,200 barrier.
Gold futures on the MCX (Multi Commodity Exchange of India Limited), were still down by 0.6% today after a week od steady decline. Silver futures corresponded to the same and had dropped 0.3% today.
Nippon India ETF Gold BeES listed on the National Stock Exchange closed down by 0.56% at Rs 39.30 having touched an intraday low of Rs 39.26 at 1:40 PM (IST) only Rs 5 away from its 52-week low of Rs 34.46.
Although the gold prices had already been a slight decline for a few months and since the government announces the 2.5% import duty cut on gold on February 1, 2021, as a part of the Union Budget 2021-22, the recent decrease has been attributed to the sharp rise in the United States and other global bond yields.
It is also to be noted that the value of the US dollar and the value of gold is negatively correlated, and since the US dollar index has been bullish against major currencies as of late, the gold prices globally have been put under pressure.
