Gold prices plunged for the fifth consecutive day following the decline in prices of the precious metal across world markets. At current prices, gold is trading at the lowest levels in eight months. On MCX, gold April futures were trading Rs 147 or 0.31 per cent down at Rs 46,752 per 10 gram. While silver March futures were ruling at Rs 69,456 per kg, up Rs 84 or 0.12 per cent on Multi Commodity Exchange.
Global gold prices slipped to near two-week lows as soaring US Treasury yields and a firmer dollar dented the bullion's appeal. Spot gold eased 0.1% to $1,793.17 per ounce by 0400 GMT. US gold futures fell 0.4% to $1,792.60.
"Investors are eyeing rising yields, dollar and are hesitant to do any bargain hunting on the precious metals at the moment as yields may go further up in view of reflation hopes and impending stimulus package," said DailyFX strategist Margaret Yang.
Benchmark US Treasury yields jumped to their highest since late-February 2020, while the dollar index rebounded from a three-week low. US President Joe Biden wants Congress to pass his relief bill in the coming weeks in order to get $1,400 stimulus checks out to Americans and bolster unemployment payments.
Higher inflation boosts gold but also lifts Treasury yields, which in turn increases the opportunity cost of holding bullion.