Gold prices on Wednesday dropped ₹396 to ₹40,871 per 10 gram in the national capital amid fall in demand for the precious metal.
In the previous trade, it had closed at ₹ 41,267 per 10 gram, according to HDFC Securities.
Silver prices also dropped ₹ 179 to ₹ 46,881 per kg from ₹ 47,060 per kg on Tuesday.
“Spot gold of 24 karat in Delhi traded lower by ₹ 396, reflecting overnight loss in global gold prices,” HDFC Securities Senior Analyst(Commodities) Tapan Patel said.
Meanwhile, the Indian rupee on Wednesday appreciated by 8 paise to 71.17 against the dollar in early trade, tracking gains in domestic equity market and fresh foreign fund inflows.
In the international market, both gold and silver were trading flat at USD 1,554 per ounce and USD 17.70 per ounce, respectively.
“Gold prices declined as global markets bounced back with stable Chinese indices after China’s central bank infused liquidity while more stimulus may come to support the economic recovery from the coronavirus crisis,” he added.