Commodities

Gold prices slump today after hitting record high

Updated : February 25, 2020 11:16 AM IST

On the MCX, prices of gold futures for April delivery traded 1.53 percent lower at Rs 42,915 per 10 grams as of 10:50 AM.

Globally, spot gold rate was down 0.2 percent to $1,657.40 per ounce, after declining 1 percent earlier in the session.

Gold prices in India fell on Tuesday after hitting record highs in the previous session as investors booked profits and as equity markets posted gains shrugging off coronavirus concerns. Strengthening Indian rupee today has also weighed on the precious metal. On the MCX, prices of gold futures for April delivery traded 1.53 percent lower at Rs 42,915 per 10 grams as of 10:50 AM.

Globally, spot gold rate was down 0.2 percent to $1,657.40 per ounce, after declining 1 percent earlier in the session.

On Monday, gold prices in Mumbai surged to a record high of 43,590 per 10 grams, rising over Rs 1,800 in a single session. In global markets, the yellow metal rose as much as 2.8 percent to its highest since January 2013 at $1,688.66.

Indian shares and rupee advanced in the morning trades today following positive sentiment in the global markets. The Indian rupee rose 18 paise to 71.80 against the US dollar. Benchmark indices BSE Sensex and NSE’s Nifty 50 opened over 0.10 percent higher in the opening trade.

Asian share markets edged higher after some dealers cited a Wall Street Journal report on a possible vaccine as helping sentiment, reported Reuters. Oil prices also rose after falling almost 4 percent in the previous session.

"S&P futures jumped and regional stock markets opened higher, so we saw a temporary bout of selling pressure come through on gold," Reuters quoted Jeffrey Halley, senior market analyst at OANDA, as saying.

"Now, we're seeing bargain hunters come in to buy gold. There are increasing concerns that the virus is becoming a global issue now rather than being contained in China."

(With inputs from Reuters)

Gold prices slump today after hitting record high

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