Gold tanks by Rs 548 to Rs 38,857 on global trend, silver sheds Rs 1,190

Gold prices on Tuesday tumbled Rs 548 to Rs 38,857 per 10 grams in the national capital in tandem with tepid global market trends, according to HDFC Securities.

The precious metal had closed at Rs 39,405 per 10 gram in the last trading session on Friday.

Silver prices also witnessed correction, falling Rs 1,190 to Rs 47,090 per kg, from Rs 48,280 per kg on Friday.

"Spot gold prices for 24 karat in Delhi fell by Rs 548 after Diwali holiday catching the fall in global markets. Spot demand for gold is expected to remain low due to Diwali vacations as major spot markets like Ahmedabad is closed on the occasion of Bhaiduj," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

He further added that international gold prices were trading under pressure on optimism of the US-China trade deal.

In the global market, gold was quoting flat at USD 1,493 per ounce and silver was trading lower at USD 17.77 an ounce.

"Gold traders may eye upcoming Federal Open Market Committee (FOMC) meeting as prices are stuck in broad narrow range," he said.