Gold Prices Today: Gold Futures Trade Lower On Expectations Of Faster Rate Hike

Gold futures were last seen trading lower by Rs 33 or 0.07 per cent - at Rs 47,916
Gold futures were last seen trading lower by Rs 33 or 0.07 per cent - at Rs 47,916

Gold Price In India: Gold futures traded lower on Thursday, January 6, as the yellow metal took cues from trends in international markets. On the Multi Commodity Exchange (MCX), gold futures due for a February 4 delivery, were last seen trading lower by Rs 333 or 0.69 per cent - at Rs 47,688, compared to their previous close of Rs 48,021. Silver futures due for a March 4 delivery were last down 0.7 per cent or Rs 1,055 at Rs 61,183 against a previous close of Rs 62,238.

Domestic spot gold opened at Rs 47,847 per 10 grams on Thursday, and silver at Rs 60,846 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

What analysts say:

"Gold is caught between two factors - supporting it is the very high number of COVID cases that feeds into the gold safe-haven appeal. The factor offering gold some resistance is the strength of the dollar and the likelihood that the dollar could get even stronger because of the Fed's tightening monetary policy,'' said Ricardo Evangelista, senior analyst at ActivTrades.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:

''COMEX gold has slipped over 0.9 per cent to trade near $1810/oz as FOMC minutes showed that Fed officials are considering faster rate hikes and also reducing the balance sheet. The losses are however limited by increasing virus concerns.

Gold has once again corrected after failing to sustain above $1830/oz but has so far managed to hold above $1800/oz level. With mixed factors in place, price may remain in a broad range however general bias may be on the downside as Fed's stance may keep US dollar supported.''