New Delhi: Gold prices retreated by ₹2,640 to ₹1.47 lakh per 10 grams in the national capital on Tuesday, and silver dropped ₹5,200 per kg, tracking weak global trends and a firm rupee.
The yellow metal of 99.9 per cent purity depreciated by ₹2,640 to ₹1,47,000 per 10 grams from Monday's closing level of ₹1,49,640 per 10 grams, according to the All India Sarafa Association.
Silver also witnessed selling and tumbled ₹5,200 to ₹2,24,800 per kilogram. The white metal had settled at ₹2,30,000 per kg in the previous session.
Traders said a stronger rupee reduced the landed cost of imported bullion in the domestic market, while weak global trends and caution ahead of the US Federal Reserve's policy decision kept investors' sentiment subdued.
"Gold edged lower on Tuesday, retreating from the previous session's gains as investors turned cautious ahead of the US Federal Reserve's policy decision," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, the precious metals traded lower despite crude oil prices extending the decline to the third day on hopes of Iran and the US resuming their peace talks over other critical matters.
The two nations extended their pause in hostilities for the fourth day, while Oman and Iran continue their discussions over the Strait of Hormuz issue.
According to reports, Oman cited some progress, and may announce a positive development leading to a possible breakthrough, though nothing is certain.
In the global markets, spot gold fell $53.30, or 1.31 per cent, to $4,023.50 per ounce and silver dropped 2 per cent to $7.24 per ounce.
"Spot gold and silver saw renewed declines in the international market, slipping to $4,030 and $57 per ounce respectively, as the dollar surged to a fresh one-month high of 101.57 ahead of Wednesday's Federal Reserve decision," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
She added that lingering uncertainty around the durability of the US-Iran de-escalation added a layer of caution, with President Donald Trump saying the talks with Iran were progressing but warned that strikes would resume if negotiations failed to deliver.