Gold price on Monday fell to Rs 48,900 from Rs 52,420, while the silver price was trending at Rs 48,910 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.
In New Delhi, the gold price
of 22-carat gold is at Rs 48,130 per 10 gm, while in Chennai it fell to Rs 46,070. In Mumbai, the rate was Rs 47,900 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 50,260 per 10 gm.
remained unchanged at Rs 65,000 per kg in previous trade.
In the international market, gold prices slumped more than 1 per cent on Friday and the metal was heading for a second straight weekly drop as the dollar continued its upturn, overshadowing bullion's appeal as an inflation hedge as the US rolls out more stimulus.
The dollar index was on track for its biggest weekly gain since October 2020, making bullion more expensive for holders of other currencies.
"Bouts of dollar strength and the uptick in US yields have triggered short-term corrections," said Standard Chartered Analyst Suki Cooper.
"The gold market
is caught between longer-term buying on the back of rising inflation expectations given stimulus measures, but selling as the dollar has bounced and concern over QE tapering materialised."
Benchmark 10-year Treasury yields held close to near 10-month highs touched earlier in the week. "The Biden administration should support a much more expansive spending agenda than before," said Tai Wong, head of base and precious metals
derivatives trading at BMO.