Consumers stay away from fresh buying despite 0.5% correction in gold price

Investors book profits amid fears that a large sell-off in equities will have a spillover effect on a safe-haven asset like bullion

The price of gold corrected by 0.5 per cent in intra-day trade on Tuesday, following global cues, as investors booked profit amid fears of large selloffs in equity having knock-on effects on the bullion. In early trade, the price dropped by Rs 1,200 to Rs 42,371 per 10 gm in futures trade on the Multi Commodity Exchange (MCX) for its delivery in April.

In the benchmark physical markets at Zaveri Bazaar, it declined by Rs 1,000 to trade at Rs 42,406 per 10 gm. However, gold closed Rs 778, or 1.8 per cent lower, at Rs 42,637. Silver closed at Rs