Gold Price Today: There is a big news from the market for gold and silver investors. At the beginning of the week, prices of precious metals have seen a sharp decline. Its impact has been felt from the global market to India’s futures market (MCX). There are some major economic changes taking place in the US, which have dimmed the gold’s luster a bit overnight. Rising crude oil prices and a rise in US Treasury yields have upset precious metals’ calculations.

What is today’s price on MCX?

Gold prices were seen to be somewhat steady on Tuesday after Monday’s sharp decline, but silver continued to decline. In the international market (COMEX), gold closed at $4,168 per ounce. At the same time, silver fell more than one percent to $61 an ounce. In India, gold for December delivery on Multi Commodity Exchange (MCX) was Rs. 1,48,600 per 10 grams is being traded. Along with this, silver for December delivery fell by 0.9% to Rs. 2,25,500 per kg has come down. Let us tell you that on Monday gold saw a heavy fall of 3% and silver more than 5%.

Pressure from foreign markets

Saxo Bank’s Head of Commodity Strategy Ole Hansen said in a report that there are larger international reasons behind the decline. The biggest reason is the steady rise in US bond yields. Along with this, the dollar is also getting stronger. Apart from this, the long holiday of ‘Golden Week’ is about to start in China. Due to this, investors there are withdrawing their money from the market, due to which the market has seen a strong sale of gold. The 10-year real yield in the US has edged closer to 2.85%, the highest in 18 years.

New difficulties arise before investors

Market experts believe that the US Federal Reserve (Fed) may triple its interest rate by 25 basis points by April next year. History is a witness to the fact that whenever interest rates rise, investing in gold looks like a losing proposition. A lot of stress is also being seen on the corporate credit front in America. People may sell their gold to raise cash if the pressure on companies to repay loans increases. The lack of liquidity in the market may increase the selling pressure on gold in the short term.

ETF investing saw interesting changes

Despite such a steep drop in prices, new figures from the World Gold Council tell a very different story. Last week, the Global Gold ETF saw $134.2 million in new investments. The most interesting thing about this was that European investors invested a lot of money in gold ETFs, but North American investors withdrew their investments from the market. Overall, $1.73 billion was invested, while $1.59 billion was withdrawn. Interest rate concerns aside, long-term investors still consider gold a very safe option in times of crisis.