SINGAPORE (Commodity Online) : Gold prices dropped in Asian trade Wednesday, retreating from a record overnight close that prompted investors to sell the metal for profit.

Gold for immediate delivery was seen trading at $1,080.50 an ounce at 11.30 a.m Singapore time while December delivery was at $1082.14 an ounce at the same time.

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On Tuesday, gold prices surged to a new high after India bought $6.7 billion worth of gold from the International Monetary Fund.

December gold jumped as high as $1,087, before settling up $30.90, or 2.9 percent, at $1,084.90 an ounce on the New York Mercantile Exchange.

India's purchase of about 200 metric tons of Gold was a strong indication of the investment demand for the precious metal.

India now holds 557.7 tons of gold in its reserves, making it the tenth largest stockpile by country, behind Russia’s 568.4 tons, according World Gold Council.

Meanwhile, the Dollar Index, which measures the greenback’s performance against six major currencies including the euro and yen, dropped 6.1 percent in the same period.

Among other precious metals for immediate delivery, Silver fell 0.4 percent to $17.1425 an ounce, Platinum was little changed at $1,356.50 an ounce, while Palladium added 0.5 percent to $328.25 an ounce.

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