Gold metal trades low as a strong dollar weighs heavy

Gold metal trades low as a strong dollar weighs heavy

Gold was lackluster in the domestic market in the early trade on January 18, mirroring a muted global trend. In the global markets, gold prices declined due to the rise in the US dollar.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.07 percent at Rs 48,668 for 10 grams at 0950 hours.

Gold prices slumped to Rs 48,702 per 10 gram in the previous trading session on January 15, as participants increased their short position as seen by the open interest. The precious metal ended with a loss of Rs 116 or 0.24 percent for the week.

The bullion price was pressured by gains in the dollar, rising bond yields, strong US Industrial Production, and rising inflation expectations.

Gold and silver prices showed strong volatility in the previous week and the yellow metal slipped in three of the five trading sessions on the MCX.