New Delhi: Gold price in India rose on Tuesday (March 30), despite weak global cues. However, domestic silver price continued to correct. As of 10:58 am, Gold April futures on Multi Commodity Exchange (MCX), rose 0.72% or Rs 314 per 10 gram to Rs 43,859 as compared to its previous closing value of Rs 43,545. Meanwhile, Silver May futures were down 0.50% or Rs 323 per kg at Rs 63,851 compared to its previous closing value of Rs 64,174.
In the international market, gold, silver weakened further, weighed down by a sharp rise in US Treasury yields and strong US dollar amid increasing optimism about US economy.
Spot gold was down 0.45% at $1,706.40 per ounce while spot silver fell 0.78% to trade at $24.583 per ounce. Progress on vaccine front and recovery in global equities also weighed on gold, silver prices.
Gold, which is considered a safe-haven asset, is sensitive to rising bond yields as they raise the opportunity cost of holding the non-interest paying yellow metal.
“Primary weighing factor on gold prices is the continuous rise in the U.S. long-term yields,” news agency Reuters quoted DailyFX strategist Margaret Yang as saying. She further added that although gold prices should rise being an inflation hedge, there is a constant decline in prices.
This decline in gold prices, “can be attributed to reflation hopes as this infrastructure plan will not only inject liquidity into the market, it’ll actually pump money into the real economy … therefore, the economic outlook is brighter than before.”
On March 29, gold and silver settled lower amid strength in the dollar index. Both the precious metals closed on a weaker note in the international markets.