On Tuesday, gold prices in the national capital fell for the second consecutive day. The strengthening of the rupee affected the domestic prices of imported gold and the price was Rs. 400 reduced to Rs. 1.52 lakh per 10 grams. According to the All India Bullion Association, the price of 99.9 per cent pure gold fell by Rs 400 to Rs 1,52,600 per 10 grams (including all taxes), while it closed at Rs 1,53,000 per 10 grams on Monday. Silver price also Rs. 500 reduced to Rs. 2,26,000 per kg (including all taxes), which was earlier Rs. 2,26,500 per kg. Where in two days the price of gold has decreased by 1800 rupees and silver price by 2500 rupees.

The rupee rose for the third day in a row

The rupee strengthened for the third consecutive day and closed at 95.38, up 40 paise against the US dollar. This was supported by the RBI’s measures aimed at reducing the demand for spot dollars and curbing excessive positions in the foreign exchange market. Gold prices remained under pressure in the domestic market on Tuesday as the rupee strengthened against the US dollar. Saumil Gandhi, senior commodity analyst at HDFC Securities, said the rupee has strengthened by more than 1.5 percent in the last two sessions. Traders say a strengthening rupee reduces the cost of dollar-denominated bullion (gold and silver) imports, which affects domestic prices.

There was a boom in foreign markets

In the global market, gold was trading marginally higher at $4,184.73 an ounce, while silver was almost steady at $60.33 an ounce. Gaurav Garg, head of research at brokerage platform Lemon, said that gold and silver are seeing strength in foreign markets despite a strong US dollar. However, uncertainty over the Federal Reserve’s interest rate outlook could limit further gains in the precious metal. According to Praveen Singh, Head of Commodities at Mira Asset Sharekhan, crude oil prices have fallen as traders anticipate the possibility of additional diesel supply from Russia in the global market. However, he said these supplies are unlikely to compensate for the global diesel shortage.