- Retail buyers continued to purchase gold in India as prices declined to a near one-year low.
PUBLISHED ON MAR 05, 2021 08:24 PM IST
Gold prices in India witnessed a further decline on Friday, keeping in line with the downtrend in international markets. On the Multi Commodity Exchange (MCX) gold futures were down 0.44% to ₹44,344 per 10 gram, marking a further fall of ₹250, or 0.56%. Silver futures also fell 0.83% or ₹550 to ₹65,371 per kg.
Retail buyers continued to purchase gold in India as prices declined to a near one-year low. “Demand has significantly improved in the past few days. Retail buyers are making purchases, especially for weddings,” Mangesh Devi, a jeweller based in Satara, Maharashtra, told Reuters.
In the international markets, the precious metal was down by 2%, touching a nine-month low after the US Federal Reserve chair Jerome Powell did not forcefully push back against the recent surge in long-term borrowing costs and sent US Treasury yields soaring. Silver went up by 0.2% to $25.35 an ounce, but remained down 5% on the week, in what is being touted as its weakest performance since late November.
Powell renewed his promise to keep credit loose until Americans can get back to work, saying that while the rise in yields was notable he did not expect that the Fed would have to intervene to push them down. “If we get decent payroll data that will boost yields even more and gold might see some additional headwinds,” Powell said at a webinar on Thursday.
Holdings in gold-backed exchange-traded funds have declined to their absolute lowest since June of 2020, and spot bullion prices were down by 0.1% at $1,695.13 an ounce on Friday.
(With agency inputs)
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