Gold prices fell Rs 118 to Rs 49,221 per 10 gram in the national capital on Wednesday on a weak global trend, according to HDFC Securities.
The precious metal had closed at Rs 49,339 per 10 gram in the previous trade. Silver prices
also declined Rs 875 to Rs 63,410 per kg, from Rs 64,285 per kg in the previous trade.
"Spot gold prices for 24 karat in Delhi fell by Rs 118, in line with weak global gold prices and flat rupee. The spot rupee was trading around 1 paisa weaker against the dollar during the day," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
In the international market, Gold prices on Wednesday retreated from a two-week peak scaled in the previous session as optimism on Covid-19 vaccine developments led investors to opt for riskier assets such as equities.
"The higher risk appetite seems to be gaining the upper hand again and coupled with the vaccine news, it seems to be weighing on gold prices," said Commerzbank analyst Daniel Briesemann.
Also, while the fresh attempt in the U.S. for a new fiscal support package supported gold on Monday, today, the news is acting as an additional trigger for risk sentiment rather than gold.