Gold prices extended their decline for the second consecutive session on Tuesday, tumbling Rs 2,150 to Rs 1,58,100 per 10 grams in the national capital as weakness in overseas markets weighed on the precious metal. According to the All India Sarafa Association, gold of 99.9 per cent purity fell from its previous close of Rs 1,60,250 per 10 grams. The prices are inclusive of all taxes.
Silver, however, moved in the opposite direction and resumed its upward march after remaining unchanged for the previous two sessions. The white metal climbed Rs 600 to Rs 2,41,100 per kilogram, inclusive of taxes. Silver had surged Rs 5,000 to Rs 2,40,500 per kg on September 3 before holding at the same level on September 4 and September 7.
US inflation data in focus
Gaurav Garg, Head of Research at brokerage platform Lemonn, said silver was recovering as weakness in the dollar provided support to precious metals, while investors remained focused on upcoming US inflation data and expectations surrounding the Federal Reserve's interest-rate trajectory.
In international markets, spot gold traded marginally lower at USD 4,404.44 an ounce, reflecting the subdued sentiment that weighed on domestic bullion prices. Spot silver, meanwhile, gained 0.11 per cent to USD 66.25 an ounce. Traders are expected to closely track US inflation numbers for fresh indications on the Federal Reserve's next policy moves, which could influence the dollar and the direction of precious-metal prices.