Gold prices fell Rs 357 to Rs 50,253 per 10 gram in the national capital on Wednesday on rupee appreciation and muted demand by investors, according to HDFC Securities.
The yellow metal had closed at Rs 50,610 per 10 gram in the previous trade.
Silver prices also declined Rs 532 to Rs 62,639 per kilogram from Rs 63,171 per kilogram on Tuesday.
“Spot gold prices for 24 karat gold in Delhi fell by Rs 357, pressured by sharp rupee appreciation on central bank interventions despite firm global prices,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
He added that the rupee was trading around 32 paise stronger against the dollar during the day.
Gold prices were muted as investors turned cautious about safe-haven buying on two positive announcements about COVID-19 vaccines in a month, Patel said.
“Gold prices are expected to trade sideways to down in absence of any major triggers from economic data. The current uncertainty over rising coronavirus cases and US administration post-election may limit the downside,” he said.
In the international market, gold was trading higher at USD 1,882 per ounce, while silver was also quoting up at USD 24.57 per ounce.