Gold and silver prices today edged lower in Indian markets after a strong surge in the previous session. On MCX, gold futures fell 0.12% to ₹47,200 per 10 gram in their fifth fall in six sessions. Silver futures edged 0.2% lower to ₹68,593 per kg.
In the previous session, gold had surged 1.2% while silver had jumped 2.8%. Gold prices have been very volatile this year after hitting a record high of ₹56,200 in August last year. Gold gold prices have also swung wildly this year, depending on the movement of US bond yields and the dollar.
In addition, import duty cut by the Indian government in recent budget has also impacted domestic gold price. After a cut in import duty in domestic market gold came down after the union budget, International gold also came down due to rise in dollar index and higher US yield, said Kshitij Purohit of Capital Via Investment Advisors.
In global markets, gold prices remained steady at $1,811.80 an ounce as equities rose to a new high. S&P 500 Index futures ticked up after the gauge hit a record on Friday while Asian markets were firm today. Capping gold’s gains, yields on the benchmark 10-year US Treasury note crept higher to around 1.17%. Higher yields increase the opportunity cost of holding non-yielding bullion.