Gold Prices fall like a hell, down ₹ 4000 from last week’s highs
- Profit booking was seen on higher levels
- Higher US bond yields make gold under pressure
Gold prices fell sharply after reachig all time high in last week,
On Friday, October gold futures fell ₹760 or ₹1.5% to ₹52,170 per 10 gram. For the week, gold was down about ₹2,600 per 10 gram. But from August 7th highs of about ₹56,200, gold is down about ₹4,000 per 10 gram. Silver also fell sharply on Friday, slumping 5.5% or ₹4,000 to ₹67,220 per kg.
In global markets, gold fell over 4% this week, amid profit-taking and an uptick in US bond yields. Spot gold fell 0.4% to $1,945.12 an ounce in New York, closing with a 4.4% weekly loss, the first decline since June.
Higher yields increase the opportunity cost of holding non-yielding assets such as bullion, which has climbed over 28% so far this year.
Premium on gold over international prices eased this week, in line with a fall in prices. Premiums eased to about $2 an ounce over official domestic prices from $4 last week, Reuters reported.
Despite weak demand, limited supplies due to suspension of international flights has been allowing dealers to charge premiums, say analysts. (live mint)