Gold price declined to Rs 46,740 per 10 gm on Saturday, while Silver price was trending at Rs 68,800 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold dropped by Rs 10 to Rs 45,740 per 10 gm, while in Chennai it slipped by Rs 90 to Rs 43,630. In Mumbai, the rate decreased to Rs 45,740 according to the website. The price of 24-carat gold in Chennai also plunged by Rs 120 to retail at Rs 47,590 per 10 gm.
In the international market, Gold tumbled 3 per cent to an eight-month low on Friday en route to its worst month since November 2016 as a stronger dollar and elevated US Treasury yields hammered non-yielding bullion’s appeal.
Spot gold was down 2.5 per cent at $1,726.31 per ounce by 1:34 p.m. ET (1834 GMT), after touching $1,716.85, its lowest since June 2020. Bullion is down 6.4 per cent so far this month.
US gold futures settled 2.6 per cent lower at $1,728.80.
“Rising 10-year yields, along with the US dollar moving higher, and we had a resurgence in risk appetite. All that was a very bad recipe for gold,” said Bart Melek, head of commodity strategies at TD Securities.
US 10-year Treasury yields held near their highest in over a year, while the dollar index also jumped.
US Treasury yields have risen more than 50 basis points so far this year, eroding gold’s status as an inflation hedge since that translates into higher opportunity costs to hold bullion.
“Gold is in trouble once more and the near-term outlook isn’t looking great,” OANDA analyst Craig Erlam said in a note.
“Rising yields and now a jump in the dollar are piling the pressure on gold and, barring a reversal in bond markets, it’s tough to envisage its fortunes improving.”
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