In New Delhi, the price of 22-carat gold iis holding steady at Rs 46,000 per 10 gram, while in Chennai it is Rs 45,530
The gold to silver price ratio was trading above 121, a lifetime high, indicating extreme weakness in silver
The dollar fell from a more than two-week high and stock markets plunged after the Fed cut rates for the second time this year
The benchmark US 10-year Treasury yields fell to a record low, while the yen rose to its highest since October against the US dollar
Silver also declined by Rs 29 to Rs 47,583 per kg from Rs 47,612 per kg
Gold-silver ratio can give direction whether the latter will rally or not
In 2016, gold returned nearly 12 per cent in rupee terms and eight per cent in dollar terms
Traders said fresh buying by jewellers to meet festive season demand from retailers led to the recovery in the precious metal prices
Among other precious metals, silver was down 0.2% at $19.69 an ounce after touching a near two-week low on Monday
Globally, gold fell by 0.14% to $1,243 an ounce and silver by 0.46% to $16.36 an ounce in Singapore
However, silver recovered by Rs 200 to Rs 38,800 per kilogram on scattered buying support from industrial units
Sentiment remained largely lacklustre, in tune with a sluggish global trend