Gold prices in the domestic market slipped 2.1% off yesterday's highs on Tuesday, tracking overseas trend, as global investors moved over geopolitical concerns.
Hit by a pullback in rupee and easing crude prices, Gold 05 Feb 2020 Futures were trading near 40,203 per 10 gm on Tuesday. Yesterday, Gold futures for 24 karats in Delhi, spiked to a record Rs 41,400 per 10 gm.
On a similar note, Silver March contract also fell 0.50% to Rs 47,311.00 per kg today.
Global investors were enthused on Tuesday amid no further escalation in the mid-east tensions.
A day after Iran announced it would retreat further from the 2015 nuclear pact, White House adviser Kellyanne Conway on Monday said US President Donald Trump was confident that he could still renegotiate the nuclear deal with Tehran.
Additionally, the Pentagon on Monday distanced itself from US President Donald Trump's assertions that he would bomb Iranian cultural sites despite international prohibitions on such attacks.
Reacting to the latest developments, spot gold fell 0.4% to $1,559 per ounce in global markets, after hitting its highest level in nearly seven years at $1,582.59. This was the biggest daily percentage decline seen in a month. In a similar move, US gold futures dipped 0.5% to $1,561.
Similarly, silver futures slipped 0.5% to $18.05 an ounce today.
Easing of global crude oil prices further led to decline in gold prices. Global oil benchmark Brent crude traded 1.23% lower at $ 68.06 per barrel, having seen a high of $70.74 on Monday.
Moreover, Indian rupee, the local currency also reversed trend and appreciated 20 paise to 71.73 against the US dollar today. The yellow metal is expected to trade with negative bias amid easing of crude oil prices and deescalation of geopolitical tensions.
By Rupa Burman Roy