Gold prices in India fell to an eight-month low on Friday and dipped below Rs 46,000 per 10 gram, tracking global rates as a rise in US treasury yields and a recovery in the US economy have dimmed the lustre of its appeal as a safe-haven asset in times of crisis.

The yellow metal is now cheaper by Rs 10,000 per 10 gram from its August 2020 highs when it was over Rs 56,000. On Friday, prices in the national capital fell Rs 239 to Rs 45,568 per 10 gram, according to HDFC Securities.

In the previous trade, it had closed at Rs 45,807 per 10 gram. In the global market, the metal was quoting lower at $1,774 per ounce.

At the MCX, gold futures were trading at Rs 46,126 per 10 gram after hitting a low of Rs 45,861 during intra-day trade.

Tapan Patel, senior analyst (commodities) at HDFC Securities, said that prices of the precious metal traded weak with Comex spot gold prices trading near $1,774 per ounce. Patel added that gold was under pressure because of the rise in bond yields which dampened demand for the safe-haven investment. Further, the risk-on sentiments have driven investors out of precious metals with gold ETF holdings at SPDR gold shares falling to 1,132 tonnes.

After hitting record peaks last year, gold prices have softened in 2021. According to Nish Bhatt, founder and CEO of Millwood Kane International, the rise in the US treasury yields and stronger dollar, optimism of a larger economic stimulus package and the vaccination drive have led to downside pressure on gold prices.