In the Indian market, prices of silver and gold had a steep rise in the previous session. Gold prices have risen by 1% and silver by 0.9%. However, in this session, they are struggling. On MCX (Multi Commodity Exchange), silver rates dropped by 0.35% to ₹63,595 (approximately $850) per 1 kg. In contrast, June gold futures didn’t change and were exactly ₹44,977 (roughly $600) per 10 grams.
The highest ever price of gold was in August of 2020, when it hit ₹56,200 per 10 grams. It lost its value by ₹11,000 and ₹5,000 of those in just the first three months of this year.
After US President Joe Biden revealed his “once in a generation” investment plan of more than $2 trillion for transportation, telecom, and energy infrastructure, prices of gold became a lot higher in the global market.
Among precious metals, silver was down 0.1% to $25.36 per ounce, but platinum was down 0.3% at $1,184. Interestingly, the prices of gold rose by 0.2% to $1,710.28 per ounce.
After the strong finish on Wall Street, equities on Asian markets mostly became higher. According to a Reuters poll of forex strategies, it’s most likely for the US Dollar to remain strong and steady for another couple of weeks, but it will weaken in the long term. When the Dollar is strong and yields are rising, gold is under enormous pressure.
Apparently, the situation will remain as such until the moment the US dollar or bond yields demonstrate a big change.