Login ID:
Partner Login
Contact Us : 7066511911

Bullion Today: Gold to Extend Losses on Rise in Bond Yield

25 Feb 2021 7:39 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) - Gold prices edged lower on Thursday as higher U.S. Treasury yields dented the metal's appeal, although losses were limited by a weaker dollar and Federal Reserve Chairman Jerome Powell's dovish comments.

Spot gold is trading at $1800 per troy ounce with negative bias.

Further, decline in the gold prices is resulting in fall in the gold holdings in exchange traded funds.

Benchmark 10-year Treasury yields topped year-to-date highs amid big block sales, and the dollar advanced, reducing demand bullion as an alternative asset.

Holdings in gold-backed ETFs dropped to the lowest since mid-2020.

The metal has had a rocky start to 2021 after its best year in a decade as expectations for improving economies boost yields and diminish demand for haven assets.

Goldman cut its gold forecast to $2,000 from $2,300. Still, the bank expects prices to be supported, partly as growing wealth aids demand in emerging markets.

Central bankers worldwide have been unequivocal that there are no plans to cut back on money-printing any time soon, or raise interest rates, but markets do not seem to be buying it.

The U.S. new home sales surged by 923,000 last month against the prior month addition of 885,000 and better-than-market expectation of 853,000.

Stronger housing market is another reason for the fall in gold prices.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,106.36 tonnes on Wednesday from 1,110.44 tonnes on Tuesday.

MCX gold and silver futures are forecast to trade lower and gold is likely to move towards Rs. 46300 per 10 grams while silver is forecast to move towards Rs. 69200 per kg.

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Market Commentary
Long/Short Quantity Position In NCDEX soy oil On 16th A...
Long/Short Quantity Position In NCDEX Mustard seed On 1...
Long/Short Quantity Position In NCDEX soyabean On 16th ...
Long/Short Quantity Position In NCDEX soyabean on 16th ...
Long/Short Quantity Position In NCDEX Castor seed On 16...
Top 5 News
Government procures 113.6 L MT, Over Four Fold than Las...
MP Cotton Eases Down On Weaker Buying From Stockists, M...
Imported Urad & Masoor Firm at Mumbai, Chana-Kabuli Chi...
Shangahi Rubber Price 19 April 2021
Icex Rubber Price 19 April 2021
Top 5 Special Reports
Weekly: Most Pulses Extend Gains This Week, Urad Report...
Weekly: NY Cotton Extends Northward Rally amid Improvin...
Weekly: NY Sugar Posts Second Consecutive Weekly Gain o...
Crisis in Mozambique Could Mean Trouble for India's Foo...
Cotton Yarn Prices to Resume Northward Rally; Expanding...
Copyright © CC Commodity Info Services LLP. All rights reserved.