Gold prices fall by Rs 10 from last close during Tuesday's early trade, with 10 grams of 24-carat gold trading at Rs 59,680. Silver prices remained unchanged with 1 kg of the precious metal selling at Rs 73,300.
The price of 10 grams of 22-carat gold also dropped by Rs 10 to Rs 54,700, 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 54,700, and Rs 59,680, respectively.
In Delhi, Bengaluru, and Chennai, 10 grams of 22-carat gold is at Rs 54,890, Rs 54,790, and Rs 55,340, respectively.
In Delhi, Bengaluru, and Chennai, 10 grams of 24-carat gold is at Rs 59,870, Rs 59,770, and Rs 60,390, respectively.
Tuesday saw a rise in gold prices as the dollar fell, but the appeal of the safe-haven commodity was curbed by an increase in risk appetite following measures by regulators to soothe concerns about the global banking system.
Spot gold was up 0.2% at $1,958.85 per ounce, as of 0308 GMT. US gold futures rose 0.4% to $1,960.80.
"The U.S. dollar seems to be stabilising, this should entice fresh buying back into the (gold) market," said Clifford Bennett, chief economist at ACY Securities.
The dollar index fell 0.2%, making bullion more affordable for buyers holding other currencies.
After First Citizens bought Silicon Valley Bank
After First Citizens BancShares said it would assume the deposits and loans of failing Silicon Valley Bank, investors reduced their safe-haven trading in favour of riskier assets, which contributed to a more than 1% decrease in gold prices on Monday.
However, gold remains the "resolute safe-haven" in a "rolling risk environment" for the banking sector as risks of contagion are far more persistent than the market would like to believe, Bennett added.
Nellie Liang, the Treasury's undersecretary for domestic finance, will inform the Congress on Tuesday that the U.S. government will keep using its resources to stop a ripple effect in the banking industry as necessary to protect Americans' accounts.
Federal Reserve Governor Philip Jefferson stated on Monday that the U.S. Federal Reserve is "still learning" how big of an impact its interest rate rises have had on the economy and inflation.
According to the CME FedWatch tool, markets are pricing a 61% chance of the Fed keeping interest rates unchanged at its meeting in May.
Although increasing rates raise the opportunity cost of holding the non-yielding asset, gold is nevertheless regarded as a hedge against economic risks.
Gold might retest a support at $1,945 per ounce, a break below could open the way towards $1,927, Reuters technical analyst Wang Tao said.
In Delhi, Mumbai, and Kolkata, the price of 1 kg of silver is Rs 73,300.
In Bengaluru, Chennai, and Hyderabad, the price of 1 kg of silver is Rs 76,000.
