Gold falls Rs 490; Silver declines by Rs 1,000

New Delhi: Gold prices fell by Rs 490 to Rs 96,540 per 10 grams in the national capital on Tuesday due to weak demand, according to the All India Sarafa Association. The yellow metal of 99.9 per cent purity had closed at Rs 97,030 per 10 grams on Monday. Gold of 99.5 per cent purity depreciated by Rs 450 to Rs 96,130 per 10 grams (inclusive of all taxes). It had settled at Rs 96,580 per 10 grams in the previous market close. “Gold traded with a modest intraday loss on Tuesday. Ongoing optimism about the US-China trade truce, along with expectations for a ceasefire between Russia and Ukraine, continues to enhance positive risk sentiment and weaken the appeal of the safe-haven bullion,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. Silver prices plunged by Rs 1,000 to Rs 97,500 per kg (inclusive of all taxes) on Tuesday from the previous close of Rs 98,500 per kg. Spot gold in the overseas market went up marginally to $3,233.68 per ounce. Traders seem uncertain about the US Federal Reserve’s (Fed) future interest rate cuts path after the hawkish stance taken by another Fed member, which has also adversely affected gold prices, Gandhi added. Kotak Securities’ AVP-Commodity Research Kaynat Chainwala said investors are awaiting speeches from several US Federal Reserve officials later in the day for monetary policy cues.