Jewellery market sees decline, silver prices fall by up to Rs 2,600; gold also turns cheaper

New Delhi (The Uttam Hindu): After two consecutive sessions of gains, gold and silver prices declined on Tuesday. Gold became cheaper by Rs 960, slipping to Rs 1.57 lakh per 10 grams, while silver fell by Rs 2,640 to Rs 2.61 lakh per kilogram in the domestic bullion market.

Pressure on precious metals increased as the US dollar recovered from its lowest level in over a week. Investors are closely watching key US employment and inflation data due later this week, which may provide clues about the future direction of interest rates.

In the international market, spot gold dropped nearly 1 percent to $5,016.56 per ounce. In the previous session, gold had gained around 2 percent due to weakness in the dollar. Notably, gold had touched its record high of $5,594.82 per ounce on January 29. Meanwhile, US gold futures for April delivery declined 0.8 percent to $5,041.60 per ounce.

Silver prices also saw a sharp decline. Spot silver fell 2.5 percent to $81.31 per ounce, after rising nearly 7 percent in the previous session. Silver had reached its all-time high of $121.64 per ounce on January 29.

In the domestic jewellery market, silver prices had surged 6.66 percent on Monday, reaching Rs 2.72 lakh per kilogram. Similarly, 99.9 percent pure gold had risen by Rs 1,300, touching Rs 1.58 lakh per 10 grams.

On the MCX, both metals had shown strength on Monday. MCX gold futures for April closed higher by Rs 2,943 or 1.89 percent at Rs 1,58,394 per 10 grams, while MCX silver futures for March gained Rs 12,853 or 5.14 percent, closing at Rs 2,62,745 per kilogram.