Gold prices have slumped by ₹450, while silver prices have declined by ₹10 in the Indian markets on Tuesday. Spot gold prices in India were trading at ₹48,180 per 10 gram on Tuesday, compared to ₹48,630 rates seen in the previous session. Silver prices also declined by ₹10 from ₹58,230 per kg to ₹58,220 per kg. Gold prices moved in the range of ₹47,800-₹48,500 per 10 gram in the local markets in the week gone by.
Gold prices in India largely depend on international rates, as much of the demand is met through imports. This makes the prices in India more vulnerable to international concerns. Factors such as positive global economic data and hopes of a Covid vaccine have left gold prices in its weakest levels in over five years.
The dollar index remained largely unchanged, while equities in the US at fresh record highs, diminishing the investment appeal of the precious metals. Now, traders are looking ahead to the US Federal Reserve’s meeting this week, to get further cues.
Meanwhile, prices of 24 karat gold in the national capital stood at ₹48,380 per 10 gram on Tuesday. In Mumbai, the rate of 10 gram 24 karat gold stood at ₹47,580, according to the Good Returns website. The rate of 22 karat gold in Chennai remained at ₹45,290 per 10 gram.