International gold price declines to 8-week low on stronger US dollar, treasury yields.
The price of gold fell by Rs 870 on Thursday to Rs 73,612 per 10 grams, news agency PTI reported. Market experts attributed the weakness in futures trade to dim international signals.
The country’s largest commodity derivatives exchange, Multi Commodity Exchange, saw gold contracts trading 1.17 per cent down and clocking a business turnover of 10,585 lots. One lot is the lowest single quantity of commodity that can be traded as part of a single transaction.
Globally, gold fell to its lowest level in eight weeks, falling for a fifth consecutive session.
International spot gold price stood at $2,555.85 per ounce, down 0.7 per cent, as at 0744 GMT (1.15 pm India time). It had hit its lowest point since September 18 intraday, according to a Reuters report. US gold futures, too, were trading about 1 per cent down at $2,560.90.
Market watchers attributed the decline to a stronger US dollar, and Treasury yields that have continued on an upward trajectory tracking the uncertainty of Federal Reserve’s likely interest rate cuts. Data released on Wednesday showed that US inflation stood firm in October, likely complicating matters for the rate-setters.
Silver price sees sharp fall
Meanwhile in India, the price of silver saw a sharp fall due to lower market activity. The price of the precious metal was down Rs 2,071 at Rs 87,126 per kilogram.
Silver was down 1.51 per cent in the international market, trading at $ 29.84 per ounce in New York, the PTI reported.
