Gold prices today down at 8-month lows after falling for 6th day in a row
Gold prices in India are down about 8 per cent or 4,000 per 10 gram so far this year after witnessing a huge rally in 2020 which pushed rates to record highs of ₹56,200 in August.
Globally, gold prices fell to their lowest in more than eight months on Friday as rising US Treasury yields eroded the non-yielding bullion’s appeal.
Spot gold fell 0.4% to $1,769.03 per ounce by 0250 GMT, having touched its lowest since July 2 at $1,759.29. According to Bloomberg, the 7% decline in spot gold so far in 2021 is the worst start to a year since 1991. However, some analysts still have a positive view on gold, saying that prospects for additional stimulus and federal reserve’s easy monetary policy make the metals a good bet for medium-to-long-term.
Investors have continued to exit gold as is evident from ETF outflows. There is also an increasing debate about bitcoin becoming ‘digital gold’, subsumed from the diverging trend seen in gold and Bitcoin in the last few days. “While gold slumped to multi-month low, Bitcoin has hit new all-time highs,” Kotak Securities said in a note.