Gold price slipped to Rs 47,200 from Rs 47,460 per 10 gram, while silver fell sharply to Rs 47,100 from Rs 47,710 per kilogram on Tuesday, according to the Good Returns website.
The prices of gold jewellery vary across India — the second-largest consumer of the metal — due to excise duty, state taxes, and making charges.
In New Delhi, the price of 22-carat gold is about Rs 46,000 per 10 gram, while in Chennai it is Rs 45,320. In Mumbai, the rate is Rs 46,000.
On MCX, August gold futures fell 0.65 per cent to Rs 47,026 per 10 gram, according to media reports. MCX has decided to accept gold and silver bars refined at domestic refineries for deliveries, subject to final regulatory approval.
Standard gold in the city’s popular Zaveri Bazaar fell by Rs 464 to trade at Rs 46,859 per 10 gram on Monday, as against Rs 47,323 on last Friday. The yellow metal for delivery in August on the Multi Commodity Exchange of India (MCX) declined 1.4 per cent to trade at Rs 46,676 per 10 grams in the early evening session on Monday.
In the international market, gold was quoting lower at $1,721 per ounce and silver at $17.26 per ounce.
“Gold prices declined on Monday along with equity indices with fear of second wave of virus infections in the world,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
“In a risk-off mood, the dollar becomes a favorable asset and that’s pressuring gold,” said David Meger, director of metals trading at High Ridge Futures.
“But since the U.S. Federal Reserve meeting, we have been crawling down because the gold market did not get more monetary stimulus from the Fed; no additional rate cuts or asset purchases.”
The Fed maintained its key overnight interest rate in target range of zero to 0.25 percent last week. Against a basket of currencies, the dollar eased but still held near a more than one-week high hit in the previous session.