New Delhi | Agencies: Gold futures on Tuesday fell 0.88 per cent to Rs 45,405 per 10 gram as participants offloaded the safe-haven asset following weak trend overseas. On the Multi Commodity Exchange, gold prices for June delivery eased 0.88 per cent or Rs 402 to Rs 45,405 per 10 gram.

The precious yellow metal for August delivery declined by 0.82 per cent or Rs 378 to Rs 45,640 per 10 gram.

In the international markets, gold prices slipped 0.2 per cent to USD 698.92 per ounce, while US gold futures fell 0.3 per cent to USD 1,707.50 per ounce.

"The gradual reopening of various economies is the biggest driver right now which is lifting sentiment. Gold seems to be in consolidation mode at the moment and very sensitive to dollar moves," OANDA analyst Craig Erlam told Reuters.

"Investors may be a little too optimistic at this point, underestimating just how gradual a process this will be. The bullish case for gold still remains the enormous amounts of monetary stimulus in the system," he added.

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Meanwhile, spot gold markets remained shut on Tuesday due to lockdown in India, according to HDFC Securities.

"The ease in lockdown measures in some of the US states, Asia and European countries weighed on gold prices. However, concerns over US-China trade war kept downside limited in gold prices," it added.

Silver futures, on the other hand, plunged Rs 165 to Rs 41,079 per kg as participants cut down their bets on low demand.

On the MCX, silver contracts for July delivery tumbled 0.4 per cent or Rs 165 to Rs 41,079 per kg.

But, in the international market, silver prices traded 0.91 per cent up at USD 14.93 an ounce in New York.

Weak trends in overseas markets mainly kept pressure on silver prices here, analysts told PTI.

Elsewhere, palladium gained 0.4 per cent to USD 1,855.39 per ounce, while platinum eased 0.2 per cent to USD 764.72.

 

(with Reuters, PTI inputs)

Posted By: James Kuanal