Gold declines as dollar moves up

Gold which is one of the most attractive options during the times of economic uncertainties has somehow lost its 'flight to safety' tag.

The sharp dollar appreciation against major currencies has impacted gold. Gold may dip if dollar continues rising against major currencies.

Historically, gold and dollar share an inverse relationship with each other and the recent spike in dollar has weighed gold down.

MCX gold futures for April delivery opened at Rs 27,900 per 10 grams and touched a high of Rs 27,972 per 10 grams at 03.05 pm IST, gold was seen trading at Rs 27,822 per 10 grams lower by Rs 25.

While silver for March delivery rose marginally and was seen trading at 57,790 per kgs up by Rs 82.

Spot gold on the other hand was trading lower at Rs 27,678 per 10 grams, silver down at Rs 56,650 per kgs.

Overseas spot gold was seen around US $1,676 a troy ounce.

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