The price of gold and silver tumbled to a two-week low on Tuesday, extending losses for second day in a row. In New Delhi, gold prices dropped by Rs 1,450 to Rs 72,200 per 10 grams.
The yellow metal was trading at Rs 73,650 per 10 grams in the previous close. "Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,200 per 10 grams, down by Rs 1,450 amid bearish cues from overseas markets," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, told PTI.
In global markets, spot gold at Comex was valued at $2,310 per ounce, down $55 from the previous session.
In the futures trade on the Multi Commodity Exchange (MCX), gold prices for the most traded June contract was valued at 70,430 per 10 grams. The silver prices on MCX for May contracts tanked Rs 710 or 0.9 per cent to Rs 79,869 per kg.
Why is gold price falling?
One of the main reasons for the melting metal prices is that the investors are moving their money from gold to the stock market amid thawing tensions in the Middle East.
The waning chances of the US Federal Reserve cutting rates in the immediate future is another reason cited for fading prices of the precious metal.
A surge in the US dollar and Treasury yields also brought down the price of gold.
"The market will be anticipating upcoming macroeconomic data on Manufacturing PMI and Services PMI from the US, UK, and Europe on Tuesday, while monitoring any developments on the geopolitical front," Chintan Mehta, Chief Executive Officer at Abans Holdings, told the news agency.