Home >Markets >Stock Markets >Gold prices today drop for second day after hitting record highs

Gold prices in India fell marginally today after hitting a record high in the previous session. On MCX, gold futures fell 0.22% to 48,027 per 10 gram, after declining 0.2% in the previous session. Gold rates had hit a record high of 48,589 per 10 gram in the previous session but could not sustain the gains. Silver rates today also edged lower. Silver futures on MCX dipped 0.4% to 47,596 per 10 gram, following a nearly 2% plunge in the previous session.

On the upside, MCX gold futures have resistance at 48,600/50,000 while support at 46,550, Geojit Financial Services said in a note.

In global markets, gold rates moved higher today on worries that rising coronavirus cases across the world could hurt the prospects of a swift global economic recovery. Spot gold rates were up 0.2% at $1,764.20 per ounce. In the previous session, they had hit a near eight-year high of $1,779.06. Among other precious metals, platinum gained 0.2% to $801.43 while silver rose 0.2% at $17.56.

The safe-haven status of gold is boosted during times of political and financial uncertainty. The precious metal is also viewed as a hedge against inflation and currency debasement. Supported by stimulus measures and interest rate cuts by central banks, gold has climbed more than 16% this year in global markets.

Investment demand for gold continues to go up. The holdings of SPDR Gold Trust holdings, the world's biggest ETF, rose 0.65% to 1,176.85 tonnes on Wednesday.

Meanwhile, the International Monetary Fund projected a deeper recession and slower recovery for the virus-ravaged world economy than it anticipated two months ago. The fund said Wednesday it now expected global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April. Rising concerns about the coronavirus pandemic accelerating sent global equities lower today.

Across the world, the total number of coronavirus cases has gone past 94 lakh with over 4.82 lakh deaths. As many US states reported record increases in new cases, the governors of New York, New Jersey and Connecticut ordered travellers from many states to quarantine for 14 days on arrival. (With Agency Inputs)

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