Gold prices fall to Rs 55,310 per 10 kg, silver declines to Rs 66,700 a kg

Gold prices Tuesday fell to 55,310 from Rs 55,610 per 10 gram, while silver declined to Rs 66,700 from Rs 67,110 per kg, according to Good Returns website.

Gold jewellery prices 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 fell to Rs 50,700 per 10 gram, and in Chennai to Rs 50,030. In Mumbai, the rate was Rs 50,710, according to the Good Returns website. The price of 24-carat gold price in Chennai was Rs 54,580 per 10 gm. 

On MCX, October gold futures fell 1.44 per cent to Rs 51,269 per 10 gram. Silver September futures was at Rs 65,569 per kg. 

Gold prices witnessed volatile trading on Monday and dipped marginally by Rs 44 to Rs 53,040 per 10 gram in the national capital, according to HDFC Securities.

In the previous trade, the precious metal had closed at Rs 53,084 per 10 gram.

"Spot gold prices for 24 carat in Delhi traded volatile with rupee fluctuation as prices pared early gains with sharp rupee appreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said. Silver also declined by Rs 206 to Rs 68,202 per kg from Rs 68,408 per kg.

Gold prices fell on Monday as risk sentiment improved after the US drug regulator authorised the use of blood plasma from recovered Covid-19 patients as a treatment option, while the dollar held firm. Spot gold was down 0.4% at $1,932.48 per ounce after hitting a one-week low of $1,910.99 on Friday. 

Investors are now waiting for U.S. Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Thursday for any hints about how aggressively the central bank will try to manage the long-term recovery from the coronavirus pandemic.