Gold prices witness slight drop in global and local markets
The price of gold has decreased in both global and local markets.
In the international bullion market, the price of gold per ounce has fallen by 3 dollars to $2767.
Meanwhile, in local markets, the price of 24-carat gold per tola has decreased by Rs 300, bringing it down to Rs 289,100. The price of gold per 10 grams also dropped by Rs 257, reaching Rs 227,209.
Similarly, the price of silver per tola has fallen by Rs 14, standing at Rs 3,395, and the price per 10 grams of silver also decreased by Rs 12, reaching Rs 2,910.
Gold prices dipped on Monday as the US dollar firmed, while investors turned their attention to the Federal Reserve's first policy meeting this year for clues about the future of interest rates.
Spot gold dropped 0.3% to $2,764.21 per ounce by 1010 GMT, retreating from near-record high levels seen on Friday. US gold futures fell 0.4% to $2,769.30.
The dollar gained 0.1%, making greenback-priced gold more expensive for other currency holders.
"The U.S. dollar's resilience following the US-Colombia tariff saga has forced gold prices downward. Spot gold had also been ripe for a technical pullback, even though its latest quest for a new record high fell just short," said Exinity Group chief market analyst Han Tan.
U.S. and Colombia defused tensions over a potential trade war after Colombia agreed to accept military aircraft carrying deported migrants.
Historically, gold has been a reliable hedge against geopolitical uncertainty and inflation, and thrives in a low-interest-rate environment where its lack of yield becomes less of a drawback.
Fed policymakers are largely expected to keep rates steady at the end of their Jan. 28-29 meeting, according to the CME FedWatch tool. This would mark the first pause in the rate-cutting cycle that began last September.
Meanwhile, the European Central Bank is set to cut rates again by another 25 basis points on Thursday.
Elsewhere, spot silver dropped 0.5% to $30.46 per ounce, after logging a 0.9% increase last week.
"The gold-to-silver price ratio pushed back up above 90 last week, some way above its average of about 85 over the last three years, suggesting silver could have potential to make further gains relative to gold," Frank Watson, market analyst at Kinesis Money, said in a note.
Palladium dipped 1.6% to $971.75 and platinum added 0.1% to $949.85.
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