Gold prices today drop as traders book profits

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Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo

Gold and silver slipped in early trade on Tuesday, thanks to a fresh bout of profit booking after a steep rally even as COVID-19 rampages throughout India, disrupting lives.

India has reported over 22.7 lakh coronavirus cases by now with more than 45,300 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high.

Gold futures on MCX NSE 0.70 % were down 0.56 per cent or Rs 306 at Rs 54,640 per 10 grams–hovering a tad below record highs. Silver futures shed 0.77 per cent or Rs 578 to Rs 74,816 per kg.

Gold prices rose by Rs 238 to Rs 56,122 per 10 gram in the national capital on Monday, according to HDFC Securities. Silver also rose by Rs 960 to Rs 76,520 per kg.

Globally, gold fell as the dollar firmed after Beijing slapped sanctions on U.S. officials in the latest flare-up in tensions between Washington and Beijing, with investors also keeping a close watch on negotiations over a US stimulus plan.

Spot gold was down 0.5 per cent to $2,017.98 per ounce by 0234 GMT, moving further away from a record high of $2,072.50 hit last week. U.S. gold futures fell 0.6 per cent to $2,028.10.

Gold remains underpinned, analysts said, with prices up more than 33 per cent so far this year mainly due to unprecedented stimulus rolled out by governments and central banks, as it’s widely viewed as a hedge against inflation and currency debasement.

Silver dropped 0.6 per cent to $28.97 per ounce and platinum fell 0.7 per cent to $979.50, while palladium rose 0.5 per cent to $2,231.31.

Source: The Economic Times

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