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Gold prices fall for 6th day in a row, at 8-month low

Gold and silver costs in India continued their decline in home markets in keeping with world charges which softened amid rising US bond yields. Gold futures on Multi Commodity Change (MCX), fell 0.2% to 46,145 per 10 gram, to close the bottom degree in eight months, and silver futures fell 1% to 68,479.

Gold costs in India are down about 8% or 4,000 per 10 gram to date this 12 months after witnessing an enormous rally in 2020, which pushed charges to file highs of 56,200 in August.

Globally, gold costs fell to their lowest in additional than seven months on Friday, heading in the right direction for his or her worst week for the reason that finish of November, as rising US Treasury yields eroded the non-yielding bullion’s enchantment.

Spot gold fell 0.4% to $1,769.03 per ounce by 0250 GMT, having touched its lowest since July 2 at $1,759.29 earlier within the session, Reuters reported. Gold costs have declined 3% to date this week.

US gold futures slipped 0.6% to $1,765.30. “US bond yields have been rallying fairly strongly within the final week, and there is rising momentum that they will carry additional as US and world progress recovers extra shortly as vaccines roll out,” Lachlan Shaw, Nationwide Australia Financial institution’s head of commodity analysis, was quoted as saying by Reuters.

Benchmark US Treasury yields hovered near a close to one-year excessive hit earlier within the week. Greater yields enhance the chance price of holding bullion, which pays no curiosity. Gold’s decline got here regardless of an sudden rise in US jobless claims final week. “The bond market is trying ahead to the place the U.S. financial system could be as we transfer by means of the 12 months as vaccines ease the burden of the pandemic on financial exercise, and with loads of stimulus and help from U.S. Federal Reserve,” Shaw stated.

Shaw stated that the latest file surge in Bitcoin has additionally “been competing with gold as far as hypothesis, a retailer of wealth and portfolio diversifier,” including {that a} continued rally in Bitcoin can be a headwind for gold.

Silver eased 1.1% to $26.71 an oz, after falling over 2.5% to date this week, its worst since mid-January. Platinum slipped 2.4% to $1,244.19, whereas palladium shed 0.7% to $2,334.58.

(With Reuters inputs)

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