Gold prices dropped on Tuesday after profit-booking by investors following weak global trends and the Dhanteras festival. The prices declined by Rs 50 to Rs 29,200 per 10 gram of 22-carat gold, and by Rs 55 to Rs 31,854 per 10 gram of 24-carat gold in Mumbai. In Delhi, the price of 22-carat gold was Rs 29,700 and that of 24-carat gold was Rs 32,400 per 10 gram.

On the Multi Commodity Exchange, gold for delivery in February 2018 was trading down by Rs 186 at Rs 29,714 per 10 gram at 2.50 pm. Gold for delivery in December 2017 fell by Rs 161 to Rs 29,693 per 10 gram around the same time.

Meanwhile, Finance Minister Arun Jaitley on Tuesday launched an options contract in gold on the Multi Commodity Exchange, on the occasion of Dhanteras, The Economic Times reported. An options contract is an agreement between a buyer and a seller that gives the former the right to buy or sell a particular asset at a later date at an agreed upon price.

“The long wait for commodity options has finally come to an end,” MCX Chairman and Chief Executive Officer Mrugank Paranjape said on the launch. “I commend the policymakers for having been proactive in bringing new products as well as new participants, facilitating further growth and development of India’s commodity derivatives market.”