Gold price on Wednesday dipped to Rs 48,590 from Rs 49,450, while the silver price also fell by Rs 2,000 to trend at Rs 71,000 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold fell by Rs 850 to Rs 47,300 per 10 gm, while in Chennai it fell to Rs 45,650. In Mumbai, the rate dropped to Rs 47,590, according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 49,800 per 10 gm.
In the international market, Silver slid more than 8 per cent on Tuesday as small investors retreated after a rally to a near eight-year peak the previous session fuelled by a social media-driven trading frenzy.
Spot silver fell 8.2 per cent to $26.59 an ounce by 1:54 p.m. EST (1854 GMT). On Monday, it surged 7.3 per cent to its highest since February 2013.
“It appears that the attempted short squeeze by the smaller retail traders has at least temporarily failed,” said Kitco Metals senior analyst Jim Wyckoff, adding retail investors were looking for other markets to impact.
Spot gold, meanwhile, fell 1.4 per cent to $1,835.11 per ounce. US gold futures settled down 1.6 per cent at $1,833.40.
Silver may weaken if gold does not move higher, HSBC analyst James Steel said in a note.