Gold prices edged higher in Indian markets today after a sharp fall the previous week. On MCX, gold rates rose 0.4 per cent to Rs 46,911 per 10 gram while silver dropped 0.04 per cent to Rs 67571 per kg. Gold had slumped a combined Rs 1,600 on Thursday and Friday, in tandem with a sharp drop in global rates. And as compared to the start of this month, rates are down about Rs 2,500.

In global markets, gold rates were higher today after posting their biggest weekly loss in 15 months. Spot gold was up 0.5 per cent at $1,772.34 per ounce after suffering a 6 per cent drop last week. The US Federal Reserve surprised the markets last week by signaling it would raise interest rates sooner than expected. As a result, the US dollar held near multi-month peaks against other major currencies, dimming the appeal of non-interest paying gold.

Meanwhile, the price drop in gold attracted ETF buyers. The holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.1 per cent to 1,053.06 tonnes on Friday from 1,041.99 tonnes on Thursday. Among other precious metals, silver was up 0.6 per cent at $25.95 per ounce while platinum rose 0.4 per cent to $1,037.89.