Gold futures on the Multi Commodity Exchange (MCX) started trading at Rs. 56780.00 per 10 grams, showing a marginal decrease of 0.13%. At the same time, the futures price of silver opened at the level of Rs.70. 66735.00 per kg, with a marginal decrease of 0.44%.
Gold prices were lower on February 10 as technical selling was a major factor in the market. Despite this decline, gold remains one of the most valuable and sought-after precious metals, used as a store of wealth and as a safe haven during times of economic uncertainty.
As of 2:05 PM GMT, spot silver was up 0.58% and was trading at $22.10 an ounce. Platinum saw an increase of 0.92%, reaching the price of $963.11. Palladium, on the other hand, saw a decline of 3.26% and was trading at $1,576.41.
The price of gold as represented by the XAU/USD currency pair is hovering near one-month lows due to the strong US Dollar. Despite this setback, gold remains one of the most valuable and sought-after precious metals in the world, with a long history as a store of wealth and a safe haven during times of economic uncertainty.
The value of the US dollar has a significant impact on the price of gold, as the two are inversely related. When the dollar strengthens, the opportunity cost of holding gold increases and demand for the metal decreases. On the other hand, when the dollar weakens, gold becomes more attractive as an investment, as it provides a hedge against inflation and currency fluctuations.
Apart from the strength of the US dollar, the state of the global economy is another major factor affecting the price of gold. Economic uncertainty, such as a recession or high levels of government debt, can prompt investors to seek the safety of gold, which can lead to higher demand and, consequently, higher prices.