Here are five things to know about gold prices on Wednesday:
1. In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 460 each to Rs 31,390 and Rs 31,240 per 10 grams, respectively. The precious metals had gained Rs 500 in the previous four sessions.
2. Sovereign, however, remained unaltered at Rs 24,800 per piece of eight grams in limited deals.
3. Following gold, silver ready drifted down by Rs 250 to Rs 39,300 per kg and weekly-based delivery by Rs 425 to Rs 38,125 per kg. Silver coins, however, were unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.
4. In global markets, gold prices fell 1 per cent on Tuesday after the new US central bank chairman pledged to stick with gradual interest rate increases. US Federal Reserve chief Jerome Powell told US Congress members that rate hikes should continue despite the added stimulus of tax cuts and government spending. The current Fed consensus has signaled three to four rate increases this year.
5. Some analysts said Powell's tone seemed partially hawkish. Higher US interest rates make bullion less attractive to investors since gold does not pay interest.