Gold prices drop after hitting record high

Gold prices today hit record highs but later edged lower on profit-taking. A weaker rupee and higher global rates have lifted gold rates in India to new highs. On MCX, gold futures were down about Rs.100 to 44,349 per 10 gram after hitting a new high of Rs.44,700 earlier in the session. In the previous session, gold prices had surged about Rs.900 per 10 gram. Silver also saw some profit-taking today with futures on MCX declining 0.6% to Rs.47,070. The rupee today fell beyond 74 levels against the US dollar, increasing the landed price of dollar-denominated gold in India.

In global markets, gold rates were steady today after surging over 2% in the previous session. Spot gold was little changed at $1,669.13 per ounce.

Among other precious metals, silver was down 0.5% to $17.33 an ounce and platinum fell 0.7% to $858.61.

Gold prices in global markets has risen over 5% this week as worries over the coronavirus sent investors scurrying for safe-havens. The emergency rate cut by the US Federal Reserve on Tuesday also boosted gold. Lower interest rates reduce the opportunity cost of holding non-yielding gold.