Today Gold Prices in India: Gold Futures Edge Higher; Silver Declines

On Thursday, February 3, gold futures traded modestly higher, despite a tepid trend in international spot values. Gold futures for February 4 delivery were last spotted 0.08 percent higher at 47,961 on the Multi Commodity Exchange (MCX), compared to the previous closing of 47,922.

Silver futures, on the other hand, dropped as participants lowered their wagers on low demand. Silver futures due for delivery on March 4 were last seen 0.46 percent lower at 61,220, compared to the previous close of 61,503.

According to Mumbai-based industry group India Bullion and Jewellers Association, domestic spot gold with a purity of 24 carats opened at 48,196 per 10 grammes on Thursday, and silver at 60,923 per kilogramme – both values excluding GST (goods and services tax) (IBJA).

Globally, gold prices remained stable as concerns over the Federal Reserve’s faster pace of policy tightening offset safe-haven demand fueled by growing tensions over Ukraine. The spot price of gold was $1,841.44 per ounce. Gold futures in the United States were likewise unchanged at $1,842.10.

Gold is regarded as an inflation hedge, but as a non-interest-paying asset, its demand may suffer when interest rates rise.

While the Federal Reserve of the United States may raise interest rates in March, policymakers were cautious this week about what might come next, given an uncertain inflation outlook and the impact of the Covid-19 outbreak on economic activity.

The US dollar index rose, reducing demand for gold priced in US dollars among buyers holding foreign currencies.

“There is currently a very high correlation between the movement of the US dollar and the direction of gold prices, with little else influencing prices over the last several trading sessions,” Michael Langford, Director at corporate advice AirGuide, told news agency Reuters.