After hitting an its all-time high level on Monday, gold rates fell on January 7. Silver prices too fell.
According to the prices given by the Indian Bullion and Jewellers Association, the rate without GST for gold (purity-999) was at Rs 40537 on Tuesday, January 7.
Silver prices fell by 810 from Rs 47955 on January 6 to Rs 47145 (purity-999) on Tuesday, January 7.
Gold prices for other purity levels are as follows:
995 - Rs 40375/-
916 - Rs 37132/-
750 - Rs 30403/-
585 - Rs 23714/-
Gold prices corrected amid a stronger rupee and profit-booking in international market for precious metal.
In the international market, gold was trading lower at USD 1,568 per ounce, while silver was also quoting down at USD 18.19 per ounce.
Equity benchmark indices trimmed most of the early gains on Tuesday but closed in the green with no new escalation in the Middle East.
The BSE S&P Sensex closed 193 points or half a per cent higher at 40,869 while the Nifty 50 edged up by 60 points at 12,053.
All sectoral indices at the National Stock Exchange were in the positive zone with Nifty realty up by 1.93 per cent, metal by 0.7 per cent and pharma by 0.6 per cent.
But traders booked profit after reports emerged that the Iranian parliament has allocated 200 million euros to Quds to avenge Gen Qassem Soleimani's assassination. The move may add fuel to the US-Iran tensions which will be a major disappointment for stock markets across the globe.
On the currency front, the Indian rupee on Tuesday reclaimed some lost ground, rising 11 paise to close at 71.82 against the US dollar as receding fears of a larger conflict in the Middle East helped crude oil prices ease.
A rebound in the domestic equity markets also supported the rupee.
Brent futures, the global oil benchmark, fell 0.62 per cent to USD 68.48 per barrel.
Experts are of the view that oil prices retreated as major crude exporter Iran stayed away from retaliation after the US assassination of a top Iranian general.
(With inputs from agencies)