Yellow metal prices in the domestic market slid on Wednesday as the rupee gained. Gold futures on the MCX fell for the third straight day and traded at Rs 47,095 per 10 grams. Silver futures also witnessed a slight fall, as they traded at Rs 63,156 per kg.
The rupee on Tuesday had strengthened by 29 paise and closed at an almost three months high against the dollar at 73 rupees. Any gain in the rupee impacts imports as it is conducted in dollars, which makes gold prices to come down.
Meanwhile in the international market, gold prices were sluggish as investors await the jobs report in the United States, which could give some indications about by when the US Federal Reserve may start cutting down on its stimulus measures. Spot gold was flat at $1,813.93 per ounce.
"COMEX gold trades marginally lower near $1,814 per ounce after a 0.3 per cent gain yesterday. Gold is rangebound amid continuing debate over Fed's monetary policy. Supporting the price is virus concerns, disappointing US and Chinese economic data and tensions in Afghanistan that is countered by continuing ETF outflows and general positive trend in equities. Gold may waver as market players may remain non-committal ahead of US jobs report however increasing challenges to the global economy may keep price supported," said Ravindra Rao, head of commodity research at Kotak Securities.