The price of 22-carat gold on Tuesday slumped to Rs 47,510 for 10 gm from Rs 48,230 and silver was 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 is at Rs 47,950 per 10 gm. In Chennai, it dipped to Rs 46,050. The rate in Mumbai was Rs 47,510, according to the website.
Prices for 24-carat gold witnessed a decline of Rs 800 per 10 gram to Rs 48,510 on Tuesday from Rs 49,310 in the previous trading session. Gold prices slumped in India following trends from the bullion markets as the focus now shifts to US inflation data.
Silver dipped by Rs 600 to Rs 71,000 per kilogram from Rs 71,600 per kilogram in the previous trade. Indian rupee ended 19 paise higher at 72.81 per dollar on Monday, amid buying saw in the domestic equity market
In the global market, gold held on to gains as the dollar slid on Monday, with investors awaiting US inflation data later this week for clarity on when the Federal Reserve might start tapering economic support measures.
Spot gold rose 0.3% to $1,895.77 per ounce by 01:42 p.m. EDT (1742 GMT). US gold futures settled up 0.4% at $1,898.80.
The dollar index was down 0.2%, boosting bullion’s appeal for those holding other currencies.
Medium to longer term outlook is positive for gold, according to analyst as there might be more volatility on equity markets, which will be increasing the value of gold as a safe haven and inflation protection.