Gold prices went down Rs 650 to Rs 96,850 per 10 grams in Delhi on Wednesday owing to a weak trend in global markets, according to the All India Sarafa Association.
In the prior trading session, gold with 99.9% purity finished at Rs 97,500 for every 10 grams.
Gold with 99.5% purity saw a decrease of Rs 700, reaching Rs 96,400 per 10 grams (including all taxes). It had closed at Rs 97,100 per 10 grams on Tuesday.
"Gold prices continue to correct as trade tensions ease, with major economies securing trade agreements with the US. China is the latest to strike a deal, as both countries agreed to a 90-day reduction in tariffs on each other's goods," Abans Financial Services' Chief Executive Officer Chintan Mehta said.
Despite the price drop, Mehta pointed out that the elevated geopolitical tensions in the Middle East continue to offer a fundamental support level for assets considered safe havens.
Silver prices continued their downward trend for a third consecutive session on Wednesday, experiencing a significant fall of Rs 1,450 to close at Rs 98,000 per kilogram, inclusive of all taxes. The precious white metal had ended the previous trading day at Rs 99,450 per kg.
Spot gold in the global markets dipped $20.65 to $3,229.64 per ounce.
"Gold is currently trading around $3,230 per ounce, supported by further signs of easing US-China trade tensions after the Trump administration announced plans to lower the 'de minimis' tariff threshold for low-value Chinese shipments to as low as 30%," Kaynat Chainwala, assistant vice president of Commodity Research at Kotak Securities, said.
Investors are awaiting US macroeconomic data, including producer price index and retail sales data, on Thursday for further clues on inflationary trends and consumer spending, she added.
(With Inputs From PTI)
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