Gold prices fell on Monday as the US dollar and global share markets firmed on the back of improving economic outlook, with elevated bond yields putting further pressure on the metal.
Spot gold fell 0.3% to $1,726.35 per ounce by 0651 GMT. US gold futures slipped 0.4% to $1,724.80 per ounce.
“Yields are the big threat to gold in the near term,” said Michael McCarthy, chief market strategist at CMC Markets, adding: “if the sell-off in bonds gathers momentum, gold could fall below $1,700 `very quickly.”
However, in India, gold rates increased in all the big cities on Monday. On MCX, the gold rate stood at Rs. 45,720 with a Rs 10 hike.
In Bengaluru, the rate of gold for the ten grams of 22-carat stood at Rs. 41,910 with Rs. 10 hike and 24-carat gold was at Rs. 45,720 with a Rs 10 hike.
Meanwhile, in Hyderabad, the gold rate stood at Rs 41,910 per ten gram of 22-carat, and 24-carat gold remained at Rs. 45,720 with a hike of Rs. 10 and Rs. 20 simultaneously.
Similarly in Kerala, the gold rates stood at Rs 41,910 per 10 gram of 22 carats and the rate of 10 grams of 24 carats remained at Rs. 45,720 with a hike of Rs. 10 and Rs. 10.
In Visakhapatnam, the gold rates stood at Rs. 41,910 per ten grams of 22 carats with Rs. 10 hike and Rs. 45,720 per 10 grams of 24 carats with a Rs 10 hike.