Yellow metal price in India continued with their downward trend on Wednesday as on the Multi-Commodity Exchange (MCX), gold futures fell by Rs 600 to a four-month low of Rs 46,029 per 10 gram.
Silver prices also fell by around Rs 1,000 to trade at Rs 63,983 per kg. In the previous session, gold and silver had fell by around Rs 1,000 and Rs 2,000 respectively.
In the international market also, gold prices fell as spot gold went down by around two per cent to reach $1,722 per ounce. The fall was mainly due to fears that a favourable US jobs data could encourage the US Federal Reserve to hike key rates earlier than expected, experts observed.
Silver was also down to trade at $23.70.
Commenting on the movement of gold prices, Head of Commodity Research at Kotak Securities, Ravindra Rao said, "COMEX gold trades little changed near $1732 per ounce after a 0.3 per cent gain yesterday. Gold is stable today as market players moved to sidelines ahead of US inflation data. Gold is range bound also as support from rising virus cases, increased geopolitical tensions and concerns about China are countered by firmness in US dollar and weaker investor interest. Gold may remain choppy ahead of inflation data however if inflation reading is in line or less than market expectations than Fed's tightening expectations may subside and gold may get some footing."