According to data from MCX, the spot had dipped to Rs 45,900 levels on Friday, while gold futures for April expiry were trading at Rs 46,126 in the late evening session.
On the Chicago Mercantile Exchange (Comex) in the US too, the price of gold was at $1,784 per ounce — the lowest level since June 29.
Being a globally traded commodity, the yellow metal’s price in India fluctuates due to — other than the demand factor — the international price and also the rupee-dollar exchange rate. Of late, although the dollar has been strengthening against most major currencies, it has been hovering at the 73 mark for the last few months against the rupee. On Thursday, the rupee had closed at 72.65 to the dollar (the interbank forex market was closed on Friday).
According to Motilal Oswal Financial Services VP (commodities research) Navneet Damani, gold prices fell because the recent strength in US treasury yields dented the non-yielding metal’s appeal.
“Benchmark US treasury yields edged higher, having hit a near one-year peak earlier in the week. On the data front, US jobless claims unexpectedly increased last week. This raised the possibility of a second straight month of tepid job growth despite declining new Covid infections,” Damani said.
“The broader range on the Comex could be $1,755-1,782 and, on the domestic front, prices could be Rs 45,700-Rs 46,300,” he said.