Gold prices drop Rs 396, silver falls Rs 179

Gold prices on Wednesday dropped Rs 396 to Rs 40,871 per 10 gram in the national capital amid fall in demand for the precious metal.

In the previous trade, it had closed at Rs 41,267 per 10 gram, according to HDFC Securities.

Silver prices also dropped Rs 179 to Rs 46,881 per kg from Rs 47,060 per kg on Tuesday.

"Spot gold of 24 karat in Delhi traded lower by Rs 396, reflecting overnight loss in global gold prices," HDFC Securities Senior Analyst(Commodities) Tapan Patel said.

Meanwhile, the Indian rupee on Wednesday appreciated by 8 paise to 71.17 against the dollar in early trade, tracking gains in domestic equity market and fresh foreign fund inflows.

In the international market, both gold and silver were trading flat at USD 1,554 per ounce and USD 17.70 per ounce, respectively.

"Gold prices declined as global markets bounced back with stable Chinese indices after China's central bank infused liquidity while more stimulus may come to support the economic recovery from the coronavirus crisis," he added.