Gold and silver prices suffered steep losses (gold price today per gram)  on Friday, tracking a sharp decline in global rates. On MCX, February gold futures slumped 4% or 2050 to 48,818 per 10 gram while silver futures tanked 6,100 or 8.8% to 63,850 per kg. In global markets spot gold dropped nearly 4% to $1,833.83 per ounce as a jump in US Treasury yields hammered bullion's safe-haven appeal.


Democrat control of the US Senate has raised the prospects of large stimulus measures, (gold price today per gram)lifting the benchmark 10-year bond yield to its highest levels since March. Further building the case for a significant shot of stimulus, December US nonfarm payrolls data showed the economy shed jobs for the first time in eight months in December.

Higher bond yields increase the opportunity cost of holding non-interest (gold price today per gram)  yielding bullion though gold is seen as a hedge against the inflation and currency debasement that could result from the widespread stimulus. Other precious metals like silver and palladium also suffered sharp drops.

Weighing on the gold price is also a recovery in the US dollar on rising bond yields, says Kotak Securities in a note. (gold price today per gram) The jump in US 10-year bond yield to above 1% levels highlights the improved outlook for the US economy, increased inflation expectations and higher interest rates, it added.

Meanwhile, in India, the 10th tranche of sovereign gold bonds (gold price today per gram) of this fiscal will open for subscription from January 11 to January 15, 2021. The issue price for the sovereign gold bond has been fixed at 5,104 per gram of gold while those applying online and making payment through digital mode get a discount of 50 per gram.

The issue price for the Bonds (Series IX), which were open for subscription (gold price today per gram)  from December 28, 2020, to January 1, 2021, was 5,000 per gram of gold.

Sovereign Gold Bond 2020-21 is issued by RBI on behalf of the Government of India.