Gold price moves higher on weaker dollar

New Delhi: Tracking a firming trend overseas, gold prices quoted higher by Rs 41 to Rs 28,394 per 10 grams in futures trade Monday.

At the Multi Commodity Exchange (MCX), gold for delivery in February contracts traded higher by Rs 41, or 0.14 percent to Rs 28,394 per ten grams.

Pick up in demand from local jewellers at domestic spot market further fuelled the upside.

Globally, gold prices edged up today on a weaker dollar and as uncertainty over US policy under President Donald Trump stoked safe-haven demand, although gains were curbed with many in Asia on holiday for the Lunar New Year.

The yellow metal is highly sensitive to rising US rates, which increase the opportunity cost of holding the non-yielding asset while boosting the dollar, in which it is priced.

Spot gold had risen 0.18 percent to USD 1,193.31 per ounce, while US gold futures were up 0.39 percent at USD 1,192.8.

With Agency Inputs