Gold prices on Tuesday dropped to 55,310 from Rs 55,610 per 10 gram, while silver plunged to Rs 66,700 from Rs 67,110 per kg, according to Good Returns website.
Gold jewellery rates differ across India, the second-largest consumer of the metal, because of excise duty, state taxes, and making charges.
In the national capitali, the rate of 22-carat gold dropped to Rs 50,700 per 10 gram, and in Chennai to Rs 50,030. In Mumbai, the price was Rs 50,710, as per the Good Returns website. The price of 24-carat gold in Chennai was Rs 54,580 per 10 gm.
On MCX, October gold futures dropped 1.44 % to Rs 51,269 per 10 gram. While Silver September futures was at Rs 65,569 per kg.
Gold prices saw uncertain trading on Monday and fell slightly by Rs 44 to Rs 53,040 per 10 gram in Delhi, as per HDFC Securities. In the erstwhile trade, gold had closed at Rs 53,084 per 10 gram.
"Spot gold prices for 24 carat in Delhi traded volatile with rupee fluctuation as prices pared early gains with sharp rupee appreciation," HDFC Securities Senior Analyst Tapan Patel stated. Silver also plunged by Rs 206 to Rs 68,202 per kg from Rs 68,408 a kg.
Gold prices on Monday dropped as risk sentiment enhanced after the US drug regulator authorised the use of blood plasma from recovered coronavirus patients as a treatment option, while the dollar held firm. Spot gold dropped 0.4% at $1,932.48 per ounce after reaching a one-week low of $1,910.99.
Investors are now holding back for U.S. Federal Reserve Chairman Jerome Powell's address at Jackson Hole on Thursday for any suggestions about how aggressively the central bank will try and oversee the long-term regaining from the coronavirus pandemic.