Gold prices fall by Rs 240, silver also drops in early trade

Gold prices fell by Rs 240 from last close during Tuesday's early trade, with 10 grams of 24-carat gold trading at Rs 59,450. Silver prices also dropped by Rs 300 with 1 kg selling at Rs 73,000.

The price of 10 grams of 22-carat gold dropped by Rs 210 to Rs 54,500, according to the GoodReturns website.

Citywide breakdown

In Mumbai, Kolkata, and Hyderabad, 10 grams of 22-carat and 24-carat gold are trading at Rs 54,550, and Rs 59,450, respectively.

In Delhi, Bengaluru, and Chennai, 10 grams of 22-carat gold is at Rs 54,650, Rs 54,550, and Rs 55,100, respectively.

In Delhi, Bengaluru, and Chennai, 10 grams of 24-carat gold is at Rs 59,600, Rs 59,500, and Rs 60,110, respectively.

Wednesday saw a slight decline in US gold prices as the dollar held steady and concerns about a wider impact of the global banking crisis subsided following efforts by regulators to boost investor confidence.

Spot gold was trading 0.2 per cent lower at $1,970.79 per ounce, as of 0050 GMT, after rising 1% on Tuesday. US gold futures eased 0.1 per cent to $1,972.30.

The dollar index was 0.1 per cent higher, making bullion more expensive for buyers holding other currencies.

Spot silver rose 0.3 per cent to $23.33 per ounce, while platinum was flat at $962.96 and palladium was also listless at $1,419.39.

In Delhi, Mumbai, and Kolkata, the price of 1 kg of silver is Rs 73,000.

In Bengaluru, Chennai, and Hyderabad, the price of 1 kg of silver is Rs 76,000.