Gold Prices Today: Gold Futures Edge Higher; Silver Declines

Gold Price In India: Gold futures traded marginally higher on Thursday, February 3, amid a muted trend in international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for a February 4 delivery, were last seen 0.08 per cent up at Rs 47,961, compared to the previous close of Rs 47,922.

On the other hand, silver futures eased as participants reduced their bets on low demand. Silver futures due for a March 4 delivery were last seen 0.46 per cent lower at Rs 61,220 against the previous close of Rs 61,503.

Domestic spot gold with a purity of 24 carats opened at Rs 48,196 per 10 grams on Thursday, and silver at Rs 60,923 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Globally, gold prices were steady as concerns about a faster pace of policy tightening by the U.S. central bank countered safe-haven demand fuelled by escalating tension over Ukraine. Spot gold was a little changed at $1,841.44 per ounce. U.S. gold futures were also steady at $1,842.10.

Gold is considered a hedge against inflation, but it could see demand take a hit from higher rates as a non-interest-paying asset.

While the U.S. Federal Reserve could hike interest rates in March, policymakers spoke cautiously this week about what might follow, given an uncertain inflation outlook, as the Covid-19 pandemic hits business activity.

The U.S. dollar index firmed, curbing demand for the greenback-priced bullion among buyers holding other currencies.

"There is presently a very high correlation between the U.S. dollar movement and gold price direction with little else influencing prices over the last few trading sessions," Michael Langford, Director at corporate advisory AirGuide, told news agency Reuters.